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Worksheets

Financial Literacy

Total questions: 41

Worksheet time: 41mins

Name
Class
Date
1.
What is your job as a borrower?
a)
To pay back your loans promptly
b)
To borrow as much as humanly possible
c)
Spend your loans and not pay them back
2.
How can a cardholder avoid paying interest on a credit card?
a)
Do not pay anything
b)
Pay the minimum payment after its due date
c)
Pay the minimum balance every month
d)
 Pay the balance in full every month
3.
The least amount that must be paid on a credit card each month is
a)
Late Fee
b)
Credit Limit
c)
Payment amount
d)
Minimum Payment
4.
The credit company can charge interest if the credit card bill is not paid in full by the due date
a)
True
b)
False
5.
It is best to pay more than the minimum due on your credit card.
a)
True
b)
False
6.
It would be best to have a high credit score
a)
True
b)
False
7.
A credit report is a report showing a borrower's history of how well they paid their bills.
a)
True
b)
False
8.
Only making the minimum payment on a credit card every month will:
a)
lower the amount total paid for the purchase
b)
make you independently wealthy
c)
take longer to pay off which will result in paying more interest, more money!
d)
pay off the credit card faster
9.
You have a choice between two credit cards: American Express 8.99% or Chase Sapphire 12.99%. Which card offers the better rate?
a)
American Express
b)
Chase Sapphire
c)
Neither
d)
All of the above
10.
You charge $500 on each of your two credit cards. One is American Express with an interest rate of 15.99%. The other is Chase Sapphire with an interest rate of 20.99%. Assuming that you are only making the minimum payment of $25 to each of the credit card companies, which card will you pay off first
a)
Chase Sapphire
b)
American Express
c)
Interest rate does not affect your minimum payments
d)
All of the above
11.
You charge $500 on each of your two credit cards. One is American Express with an interest rate of 15.99%. The other is Chase Sapphire with an interest rate of 20.99%. Assuming that you are only making the minimum payment of $25 to each of the credit card companies, which card will you have paid more interest for?
a)
Chase Sapphire
b)
American Express
c)
You pay the same amount of interest for both
d)
All of the above
12.

How long will a negative credit action usually remain on a credit report?

a)

4 years

b)

11 years

c)

7 years

d)

15 years

13.

What is important in establishing good credit?

a)

Making payments on time

b)

Being late on payments

c)

Spending 100% of your credit limit

d)

Missing a payment

14.

Why is it important to establish positive credit history?

a)

Higher credit scores result in lower interest rates on loans

b)

You are more likely to be offered a loan by a bank

c)

Positive credit history results in higher credit scores

d)

All of the above

15.

What is included under credit history on a credit report?

a)

Date of birth

b)

Late payments

16.

Late payments can help create a high credit score

a)

True

b)

False

17.

Who would be more likely to get a car loan?

a)

Dave with a credit score 560

b)

Julie with a credit score 780

18.

A person, or a financial institution that lends money, and in return charges interest?

a)

Borrower

b)

Lender

19.

A person who takes and uses a sum of money under an

agreement to pay it back?

a)

Borrower

b)

Lender

20.

Information about my purchases in cash or with a debit card appear on my credit report

a)

True

b)

False

21.

Which information would NOT appear on your credit report?

a)

Credit Card balance

b)

Car loan

c)

Mortgage

d)

Debit Card balance

22.

Your credit score determines how successful you will be in obtaining a loan

a)

True

b)

False

23.

Which is an exceptional credit score?

a)

672

b)

555

c)

713

d)

813

24.

What does a credit score represent?

a)

The amount of years a person has been paying a loan.

b)

The amount of credit cards a person has.

c)

The credit history of a person.

d)

The amount of money a person has saved.

25.

A debit card allows for an immediate electronic transfer of money from a cardholder's savings or checking account.

a)

True

b)

False

26.

A debit card is handy in an emergency when you don't have the money to spend.

a)

True

b)

False

27.

A debit card is a buy-now, pay-later payment type with a grace period for payments.

a)

True

b)

False

28.

Which is a disadvantage of a credit card?

a)

Credit cards are buy-now, pay later

b)

Credit cards provide preapproved credit

c)

Credit cards charge interest

d)

Credit cards are the best way to pay for something online, because you can dispute a the charge

29.

Consumers can purchase items now and pay for them later.

a)

Debit Card

b)

Credit Card

c)

Both

30.

Interest may be charged but can be avoided by paying the entire balance each month.

a)

Debit Card

b)

Credit Card

c)

Both

31.

Eric purchased a movie ticket with his card. This money will come straight out of his checking account. What card did he use?

a)

Debit Card

b)

Credit Card

c)

Both

32.

Rosa’s gas pump went out as she was driving her car to work. Since she did not have enough money to cover the cost to replace the pump, she used a card that allowed her to pay later. What card did she use?

a)

Debit Card

b)

Credit Card

c)

Both

33.

To avoid carrying cash, Ned pays for his lunch using this card. Each time he uses this card his checking account decreases. Which card did he use?

a)

Debit Card

b)

Credit Card

c)

Both

34.

It can be used to purchase goods and services.

a)

Debit Card

b)

Credit Card

c)

Both

35.

Great for emergencies

a)

Debit Card

b)

Credit Card

c)

Both

36.

Affects credit score

a)

Debit Card

b)

Credit Card

c)

Both

37.

You are an education major, and part of your financial aid money is the money you earn as a tutor.

a)

scholarship

b)

grant

c)

work study

d)

loan

38.

You receive $500 from the local cultural society.

a)

scholarship

b)

grant

c)

work study

d)

loan

39.

You are majoring in chemistry and entering your third year of college. You receive money from the federal government through a program that awards financial aid to students majoring in science, technology, engineering and math.

a)

scholarship

b)

grant

c)

work study

d)

loan

40.

Your father lost his job and the family's income became much lower. You receive money from the government to pay for college.

a)

scholarship

b)

grant

c)

work study

d)

loan

41.

You entered your painting in a contest and won $750 to pay for your college expenses.

a)

scholarship

b)

grant

c)

work study

d)

loan