WorksheetsCredit Unit
Total questions: 13
Worksheet time: 7mins
If the total amount of your debts are greater than the total amount of your assets, you are experiencing:
insolvency
a personal balance sheet
bankruptcy
a foreclosure
If you are insolvent, what is something you can do, but should only be used as a last resort?
get a home equity line of credit
bankruptcy
debt consolidation
forbearance
A loan made where no collateral is pledged against the loan is called:
secured debt
home mortgage
foreclosure
unsecured debt
Before considering borrowing any money, first create a ________________, stay disciplined to it, and create good habits for paying bills on time.
personal financial statement
bank statement
personal balance sheet
budget
Which of the following is a type of loan or line of credit that establishes a credit limit, where funds can be borrowed and paid back over and over, so long as the total outstanding loan balance doesn't exceed the established credit limit.
Revolving Credit
Rewards Credit Card
Secured Debt
Installment Loan
If you borrow money to purchase a home, what type of loan are you mostly likely to get?
unsecured loan
secured loan
credit card loan
revolving credit loan
If you don’t pay at least the minimum amount on your monthly credit card bill, your credit card issuer will:
charge an annual fee
charge a late fee
decrease their APR rate
increase their APR rate
The total cost of borrowing money for one year, expressed as a rate, is called:
Annual Percentage Rate
Periodic Interest Rate
Average Daily Balance
Cost of Credit
What are four factors lenders use to determine the creditworthiness of a borrower?
character, credit score, collaboration, collateral
character, credit score, capacity, collateral
copyright, credit score, capacity, collateral
character, cost accounting, capacity, collateral
Which of the following statements is TRUE?
A home equity loan is only available once you’ve completely paid off your house
A home equity loan typically has a fixed interest rate
A home equity loan is typically interest free
A home equity loan does not need to be paid back until you’ve paid off your house
Newton gets bored easily and likes to relocate to a new neighborhood or even a new city every 2-5 years. Which of the following would be the BEST use of his financial resources.
Renting a home or apartment
Buying a home using a fixed-rate mortgage
Buying a home using an adjustable-rate mortgage
Which of the following statements is TRUE?
If you have a low credit score, your mortgage interest rate will be lower. If you have a high credit score, your mortgage interest rate will be lower.
If you have a low credit score, your mortgage interest rate will be lower. If you have a high credit score, your mortgage interest rate will be higher.
If you have a low credit score, your mortgage interest rate will be higher. If you have a high credit score, your mortgage interest rate will be lower.
If you have a low credit score, your mortgage interest rate will be higher. If you have a high credit score, your mortgage interest rate will be higher.
If you are behind on your mortgage payments, the lender might show some leeway and offer:
unsecured debt
forbearance
insolvency
foreclosure
