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Worksheets

FA Study

Total questions: 40

Worksheet time: 20mins

Name
Class
Date
1.

True or False,  Pre-payment privilege – This feature allows borrower to make payments before due dates to reduce the amount of interest. This is a feature that you want in your contract?

a)

True

b)

False

2.

If you have a credit card with an APR of 29.99%, a BOM, Beginning of month balance of $15,000, and make a payment on the 15h of $5,000, which brings your EOM, End of month, to $10,000.  What will your monthly interest charge be? 

a)

$255.25

b)

$292.15

c)

$307.5

d)

$325.10

e)

None of the above

3.

True or False,  Pre-payment penalty – This agreement and requires borrower to pay a penalty fee, if they wish to pay back entire loan before due date. This is a feature that you want in your contract? 

a)

True

b)

False

4.

If I have a credit score of 800, I would fall into which credit rating?

a)

Prime

b)

Super Prime

c)

Non Prime

d)

Sub Prime

e)

Deep Sub Prime

5.

What was the name of the first credit card?

a)

Mastercard

b)

Visa card

c)

American Express card

d)

Discover card

e)

Diner's club card

6.

Which of the below answers is an advantage to use credit cards?

a)

You can use the product while you pay.

b)

You don't have to carry around cash.

c)

You can buy now and pay later.

d)

All of the above

e)

None of the above

7.

If you have a credit score of 800 and buy a new car that offers you an interest rate of 2.99%, for 60 months, with a cost of $30,000.  How much more money would you pay, over the asking price of $30,000?

a)

~$1000

b)

~$1700

c)

~$2000

d)

~$2300

e)

None of the above

8.

A person or organization which extends credit is called a what?

a)

Creditor

b)

Loan provider

c)

Debtor

d)

Bank

9.

Who was Facebook originally made for?

a)

Fraternity brothers

b)

US. Government

c)

Harvard students

d)

Friends and family

10.

What is the name of the three credit agencies that report and grade your credit?

a)

US Treasury, Transunion, Equifax

b)

Transunion, US Treasury, Experian

c)

Equifax, Transunion, Experian

d)

None of the above

11.

If you have a credit card with an APR of 29.99%, a BOM, Beginning of month balance of $10,000, and make a payment on the 15h of $2,000, which brings your EOM, End of month, to $8000.  What will your monthly interest charge be?

a)

$199.50

b)

$210.20

c)

$221.40

d)

$231.90

12.

True or False, The loan amount you borrow, is called the principle.

a)

True

b)

False

13.

If you have a credit score of 800 and buy a new car that offers you an interest rate of 2.99%, for 60 months, with a cost of $30,000.  How much would your monthly car note be?

a)

$500

b)

$525

c)

$540

d)

$560

e)

None of the above

14.

The person who agrees to pay back a loan, in the event that the borrower is unable, or defaults, is called a ?

a)

Debtor

b)

Creditor

c)

Co-signer

d)

Not smart person

15.

Voluntary deduction from an employee’s paycheck is ?

a)

Pre-payment privilege

b)

Pre-payment penalty

c)

Wage assignment

d)

Wage garnishment

16.

True or false, all credit cards are the exact same size? 

a)

True

b)

False

17.

Who created Facebook?

a)

Jeff Bezos

b)

Jack Ma

c)

Bill Gates

d)

Mark Zuckerberg

18.

If I have a credit score of 655, I would fall into which credit rating?

a)

Prime

b)

Super Prime

c)

Non Prime

d)

Sub Prime

e)

Deep Sub Prime

19.

How many times was Jack Ma denied admission to Harvard?

a)

5

b)

10

c)

15

d)

20

20.

Who created the first credit card?

a)

Frank McNamara

b)

JP Morgan Chase

c)

Bank of America

d)

Wells Fargo

21.

Which company bought instagram for $1 billion 

a)

Facebook

b)

Alibaba

c)

Apple

d)

Whatsapp

22.

True or False, Buyers with low credit ratings, get the lowest interest rates?

a)

True

b)

False

23.

Who created Apple?

a)

Jeff Bezos

b)

Steve Jobs

c)

Jack Ma

d)

Bill Gates

24.

Mark Zuckerberg earns a whopping salary of ____ per year?

a)

$100 million

b)

$150 million

c)

$1 billion

d)

$1

25.

Jeff Bezos keeps Amazon's expenses low by ...

a)

Keeping old black and white printers

b)

Not allowing employees to fly first class

c)

Restricting high paying salaries

d)

All of the above

e)

None of the above

26.

True or False, Generally anyone with a credit score less than 600 is considered a significant risk to the creditor

a)

True

b)

False

27.

This is the involuntary form of wage assignment, often enforced by the court order.

a)

Pre payment privilege

b)

Pre payment penalty

c)

Wage assignment

d)

Wage garnishment

28.

True or False, A charge card has to be paid in full at the end of each billing period?

a)

True

b)

False

29.

True or False, the first credit card was actually a charge card?

a)

True

b)

False

30.

If you have a credit score of 800 and buy a new car that offers you an interest rate of 2.99%, for 60 months, with a cost of $30,000.  What is the total difference in the amount paid after 60 months, if you compared 2.99% to 5.99%?

a)

~$1000

b)

~$1700

c)

~$2000

d)

~$2300

31.

In what decade was the first credit card created?

a)

1940-1950

b)

1950-1960

c)

1960-1970

d)

1970-1980

32.

Jack Ma applied to __ jobs and got rejected from all of them.

a)

30 jobs

b)

10 jobs

c)

20 jobs

d)

15 jobs

33.

Who created Alibaba?

a)

Jeff Bezos

b)

Jack Ma

c)

Bill Gates

d)

Mark Zuckerberg

34.

Which of the below answers are disadvantages to the use of credit card?

a)

Creditors charge interest on all purchases, not paid in full, by the end of the month.

b)

Debtors tend to overspend when using credit instead of cash.

c)

Both A&B

d)

None of the above.

35.

Whenever you borrow money, you must sign an agreement called a __________, which state the conditions of the loan.

a)

Contract

b)

promissory note

c)

Terms and conditions

d)

Letter of intent

36.

Your _________ is your promise to pay back the loan as stated in the note.

a)

Word

b)

Payment

c)

Signature

d)

None of the above

37.

Last year I decided to purchase a car for $20,000.  I have a Deep Sub Prime credit rating, so my interest rate was 28.99%, which is the same as my credit card.  Instead of financing for 60 months, I decided to buy it with my credit card.  My spending limit is $20,000, so I made a payment on the 15th, to bring the balance down to $19500.  What will my monthly interest payment be?

a)

~$470

b)

~$450

c)

~$430

d)

~$400

38.

Which of the below is not required for the promissory note to contain, regarding information the creditor is required to state as stipulated in the Truth in Lending Act.

a)

Principle

b)

APR

c)

Monthly payment

d)

A lot more

e)

None of the above

39.

If you have a credit card with an APR of 0% for the first 21 months, a BOM, Beginning of month balance of $10,000, and make a payment on the 15h of $2,000, which brings your EOM, End of month, to $8000.  What will your monthly interest charge be? 

a)

$255.25

b)

$292.15

c)

$307.50

d)

$325.10

e)

None of the above

40.

A person who uses credit is called a what?

a)

Creditor

b)

Buyer

c)

Debtor

d)

Purchaser