WorksheetsTerm QUIZ Review #1
Total questions: 43
Worksheet time: 1hrs 5mins
What does APR stand for?
Annual Prestige Rate
Annual Percentage Rate
Annual Percentage Return
Annual Phantom Rating
What is the Annual Percentage Rate (APR) used for?
The interest rate you will pay on your car loan.
The interest rate you will pay on your credit score.
The interest rate you will pay on your debit card.
The interest rate you will pay on your credit card.
What is the Annual Percentage Rate (APR) definition?
An interest rate that does not charge you for borrowing money.
A yearly interest rate that shows the total cost of borrowing money.
A bi-weekly interest rate that shows the total cost of borrowing money.
An interest rate that is earned in one period and is added to the principal and used to calculate interest in the next period.
What is the definition of Automatic Payment?
When a bank makes a payment for the account holder automatically.
An annual fee
When a bank makes a deposit for the account holder automatically.
When a bank makes a payment for the account holder when they call the bank.
What is Automatic Payment used for?
Monthly car loan payments.
Monthly debit card bills.
Monthly principal loan payments.
Monthly credit card bills.
What is the definition of Debit Card?
Money that is given to the holder's bank account immediately at the time of a transaction
(as a purchase).
Money that is taken from the holder's bank account immediately at the time of a transaction (as a purchase).
Money that allows the holder to purchase goods or services on credit
(as a purchase).
Money that allows the holder to purchase only groceries or services on credit
(as a purchase).
What can a Debit Card be used for?
To buy a house.
To buy a car.
To buy groceries from Target.
To buy food from a cash only restaurant.
To buy a shirt online.
If there is not enough money in the account for your Debit Card (checkings), what will happen?
Your card will be accepted.
Your card will be taken by the cashier/clerk.
Your card will be declined.
Your card will make your credit score go down.
What is the definition of a Credit Card?
A small plastic card issued by a bank, business, etc., lets you borrow money to buy things while having to pay it back with interest.
A small plastic card issued by a dealership, lender, etc., lets you borrow money to buy things while not having to pay it back with interest.
A small plastic card issued by a bank, business, etc., allowing the holder to purchase only cars or houses on credit.
A small plastic card issued by a bank, business, etc., allowing the holder to not purchase goods or services on credit.
What can you purchase with a Credit Card?
A house.
Groceries from Target.
Concert tickets.
A car.
What is the definition of a Grace Period?
The time between making purchases with your debit card and when you have to pay the bill.
The time between making deposits on purchases with your credit card and when you have to pay the bill.
The time between making deposits on purchases with your credit card and when you have to pay the principal.
The time between making purchases with your credit card and when you have to pay the bill.
What is the definition of a Minimum Payment?
The biggest payment you can make on your credit card.
The smallest payment you can make on your debit card.
The smallest payment you can make on your credit card.
The biggest payment you can make on your debit card.
What happens if you only pay the Minimum Payment?
It will take a long time to pay off.
You will have to then pay an annual fee.
It will give you minimum rewards.
You will pay credit card interest.
You card will be denied after a certain time.
What is the definition of Credit Limit?
The minimum you can charge on your debit card.
The maximum you can charge on your credit card.
The minimum you can charge on your credit card.
The maximum you can charge on your debit card.
What is the purpose of a Credit Limit?
To go over your credit limit.
To not go over your debt limit.
To go over your debt limit.
To not go over your credit limit.
What is a consequence of a Late Payment?
Your interest rate will go down.
Your interest rate and credit score will stay the same.
Your credit score will go up.
Your interest rate will go up.
Your credit score will go down.
What are some Credit Card features?
Travel Miles
Rewards Points
Cash Back
Lower Interest Rates
What is the secret to Credit Cards?
PAY THE MINIMUM
PAY WHEN YOU CAN
PAY ON TIME
PAY IN FULL
What is the definition of Simple Interest?
An interest charge that borrowers pay lenders for a loan.
An interest charge that lenders pay borrowers for a loan.
A fee that is charged to borrowers to pay lenders for a principal.
A fee that is charged to lenders to pay borrowers for a principal.
Who is better fitted for Simple Interest?
Borrowers
Lenders
What is the definition of Compound Interest?
When you pay interest on both the money you've saved and the interest you paid.
An interest charge that borrowers pay lenders for a loan.
When you earn interest on both the money you've saved and the interest you earn.
An interest earned that borrowers pay lenders for a loan.
What is the definition of Compound Frequency?
Interest paid or figured on the original amount only of a loan.
How often banks receive or deposit money.
Interest deposited or received on the original amount only of a loan.
How often banks charge or pay interest.
When do banks charge or pay interest through Compounding Frequency?
Annually
Semi- Annually
Annually
Semi- Annually
Quarterly
Annually
Semi- Annually
Quarterly
Monthly
Annually
Semi- Annually
Quarterly
Monthly
Daily
At what rate does Simple Interest grow?
Grows at a changing rate.
Grows at a constant rate.
Grows at a high rate.
Stays the same.
At what rate does Compound Interest grow?
Grows at a constant rate.
Stays the same.
Grows at a high rate.
Grows at a changing rate.
What do Simple and Compound interests have in common?
It is better for borrowers.
They both grow at a changing rate.
They are paid or earned on principal only.
They both grow at a constant rate.
It is a way to make money work for you.
What is the definition of a Credit Score?
A number the banks gives you to see how responsible you are.
A number that measures your financial responsibility.
A number that measures your debit card responsibility.
A deposit that measures your financial responsibility.
Which of these numbers represents a Poor Credit Score?
623
482
367
759
Which of these numbers represents an Excellent Credit Score?
743
557
789
489
What is considered to be a "good" interest rate to have?
9.09%
5.89%
13.74%
2.57%
What is considered to be a "bad" interest rate to have?
12.59%
7.37%
3.91%
16.15%
What is the definition of Principal?
The interest that you originally agreed to pay back.
The Credit Score that you originally agreed to earn back.
The interest that you agreed to charge back.
The money that you originally agreed to pay back.
What is the definition of Direct Deposit?
Allows your employer to make withdraws straight into your bank account instead of giving you a paper check to deposit yourself.
A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer.
Allows your employer to make deposits straight into your bank account instead of giving you a paper check to deposit yourself.
A typed, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer.
What is the definition of Bank?
A financial institution licensed to accept deposits and make laws.
A financial institution licensed to accept withdraws and make loans.
A financial institution licensed to accept debit cards and credit cards.
A financial institution licensed to accept deposits and make loans.
What could be a potential issue with a Credit Card?
Low interest rate
Early payments
No rewards
High interest rate
What does it mean when you have a low credit score?
You are financially trustworthy.
You are financially loyal.
You are not financially trustworthy.
You are not financially loyal.
What does it mean when you have a high credit score?
You are financially trustworthy.
You are financially loyal.
You are not financially trustworthy.
You are financially loyal.
Who could check your credit score?
DMV
Landlords
Your cousin
Teachers
Executive Branch of the Government
How often should you review your credit report?
Daily
Monthly
Semi-monthly
Annually
What represents Simple Interest?
You have to pay interest.
You pay and earn interest.
You earn interest.
What represents Compound Interest?
You pay and earn interest.
You earn interest.
You have to pay interest.
What is the definition of Lender?
The person or party that lends money.
The person or party that saves money.
The bank or government that lends money.
The bank or government that saves money.
What is the definition of Borrower?
The person that saves money.
The person that invest money.
The person that saves and invests money.
The person that borrows money.
