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Personal Finance L2

Total questions: 10

Worksheet time: 10mins

Name
Class
Date
1.

DEFINE credit.

a)

Any form of deferred payment.

b)

The loaning of assets.

c)

A score that measures your trustworthiness.

d)

The promise to spend borrowed money.

2.

DEFINE interest.

a)

A late fee applied to borrowed money.

b)

The promise to repay a debt.

c)

The additional cost to borrowing money.

d)

A measure of monetary strength.

3.

An entity that charges borrowers interest rates above the legal limit is called a...

(a)  

4.

Roughly ___% of Americans own at least one credit card.

a)

95%

b)

83%

c)

67%

d)

51%

5.

The ​ (a)   motivated banks to get into the credit business because it made credit ​ (b)  

Choose from the below words
New Deal
Profitable
Affordable Care Act
2008 Housing Crisis
Unprofitable
6.

Match the following

a)

Federal Deposit Insurance Corp (FDIC)

1.

Insures deposits up to $250,000.

b)

Home Owner's Loan Corp. (HOLC)

2.

Refinances mortgages in risk of default.

c)

Federal Housing Administration. (FHA)

3.

Insures loans for home building and home buying.

d)

Electric Home and Farm Authority. (EHFA)

4.

Made loans for farmers to refinance their farms.

7.

Because of ​ (a)   after WWII, using credit to buy things became more socially ​ (b)  

Choose from the below words
increased consumption
acceptable
decreased consumption
unacceptable
indifferent
8.

Since the 1950s, credit usage has consistently...

(a)  

9.

Since the 1950s, household debt has...

(a)  

10.

As of right now, the majority of debt for an American under 35 years old comes from...

a)

Student Loans

b)

Credit Cards

c)

Mortgages

d)

Auto Loans