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MCP Financial Literacy Borrowing (1)

Total questions: 22

Worksheet time: 50mins

Name
Class
Date
1.

Name the savings plan(s) that accumulate interest.

a)

Money Market Accounts

b)

Certificates of Deposit

c)

US Savings Bonds

2.

Select all of the services most commonly provided by banks.

a)

Borrowing Services

b)

Savings Accounts

c)

Payment Services

d)

Brokerage Accounts

3.

Recall what sets Credit Unions apart from commercial banks. (Pick all that apply.)

a)

Credit Unions are owned by their members

b)

Credit Unions offer more free services

c)

Credit Unions are not profit focused

d)

Credit Unions belong to the Federal Reserve

4.

Who may review your credit report without your permission?

a)

Your parents after you are 18 years old

b)

Your current employer

c)

The car sales person to talk to about getting a loan on a new car

d)

Your doctor

5.

Which are the names of the three credit bureaus?

a)

Equifax, credit unions, lenders

b)

Credit unions, banks, check cashiers

c)

Experian, Credit Reports Association, FDIC

d)

TransUnion, Experian, Equifax

e)

None of the above; you must pay a fee for any credit report

6.

The total amount of money you owe other people.

a)

Interest

b)

Debt

c)

Credit

d)

Garnish

7.

Something of value that lenders can repossess if you are unable or unwilling to repay a loan as promised

a)

Credit Score

b)

Grace Period

c)

Collateral

d)

Interest

8.

The cost of borrowing money is referred to as...

a)

interst

b)

credit

c)

credit line

d)

Annual percentage rate

9.

List three strategies you can apply as you turn 18 to build a good credit history.

a)

Take out all of the credit cards you can, make payments late so you pay interest, borrow money to friends

b)

Take out a loan or credit card, Make payments on time, repay yourself with interest

10.

If your payment for your full credit card is received by the lender before the due date, you will not owe any interest.

a)

True

b)

False

11.
When getting a car loan you will want to get the highest or the lowest interest rate?
a)
lowest
b)
highest
12.
Brenda's bank offers car financing for 3, 4, or 5 years.  If Brenda chooses 5-year financing, how many monthly payments will she have?
a)
60
b)
48
c)
36
d)
12
13.
What would happen to a monthly payment if the interest rate increased?
a)
The payment would go up.
b)
The payment would go down.
c)
The payment would remain the same.
d)
None of the above.
14.
An increase in which of the following will decrease the monthly payment?
a)
Interest rate
b)
Down payment
c)
Principal
d)
None of the Above
15.
The maximum amount of charges allowed to an account:
a)
APR
b)
Credit Limit
c)
Annual Fee
d)
Introductory Rate
16.
The amount you must pay on your credit card each month is called a(n):
a)
Available Credit Amount
b)
Minimum Payment
c)
Interest Rate 
d)
Cash Advance
17.
What does it mean when a student loan is "forgiven"?
a)
You get a letter of apology from the government
b)
You don't have to keep going to classes to get your degree
c)
You don't get as much money as your were previosuly promised
d)
You don't have to pay back the remainder of your loan debt
18.
Private student loans have better interest rates than government student loans
a)
True
b)
False
19.
A federal student loan is provided by...
a)
Private companies
b)
The state you live in
c)
US Federal government
d)
Investors
20.

An APR of 25.99% in decimal form is....

a)

.02599

b)

.2599

c)

2.599

d)

25.99

21.

Which type of bankruptcy requires a repayment plan to creditors over 3-5 years?

a)

Chapter 7 Bankruptcy

b)

Chapter 13 Bankruptcy

c)

Chapter 11 Bankruptcy

d)

Debt Repayment Plan

22.

This type of Bankruptcy allows a person/business to discharge (eliminate) their debt by erasing it after liquidating assets

a)

Chapter 7

b)

Chapter 11

c)

Chapter 12

d)

Chapter 13