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FA Unit 8 Unit Review

Total questions: 20

Worksheet time: 3600secs

Name
Class
Date
1.

Which statements are true about late credit card payments?

a)

They can drop your credit score by as much as 100 points

b)

They are an extremely rare occurrence among American credit cardholders

c)

They can stay on your credit report for up to 7 years

d)

They are the largest factor in your overall credit score

2.

How does paying your credit card bill on time each month affect your credit score?


a)

It stays the same

b)

It lowers your score

c)

It raises your score

d)

It makes your score invalid

3.

Which of the following are not included in your credit report?

a)

You bought a $300 prepaid card

b)

You checked your credit score on your bank’s mobile app

c)

You made your student loan payment on time

d)

You used your debit card at the grocery store

4.

What are some consequences of struggling to pay off excess debt?

a)

Developing health problems from the stress of carrying debt

b)

Having your wages reduced by collectors on unpaid debts

c)

Being fired from your job if your employer finds out you have too much debt

d)

Having purchases repossessed (home, vehicle, etc.) for failure to make payments

5.

Which students are most likely to have the lowest credit scores?

a)

Hassan has 3 credit cards with low balances and often forgets which one they need to make payments on and is late

b)

Bekkah has 2 credit cards and they’re usually near their credit limit

c)

Kareem has 3 credit cards that they pay in full every month and recently applied for a new line of credit

d)

Sarah has never had a credit card and has over $10,000 in her savings account

6.

Which statements about predatory lending are true?

a)

They have a federally-mandated maximum APR of 25%

b)

They disproportionately affect communities of color

c)

They can come in many forms like high interest rates and excessive fees

d)

They often occur in conjunction with home mortgages

7.

You should check your credit report regularly to identify potential​ (a)   or ​ (b)   activity

Choose from the below words
errors
fraudulant
ways to improve your credit
due dates
8.

Which statements are not typically true about a secured credit card?

a)

A secured credit card is the same as a debit card, drawing money down directly from your checking account

b)

A secured credit card has interest rates far lower than those of a typical credit card

c)

A secured credit card requires the borrower put down a deposit to create their credit limit

d)

A secured credit card cannot be used to shop online, because you have to sign a receipt after every purchase

9.

Julius reviews his credit report and decides to put a "red flag" on it. Which of the following will NOT happen?

a)

New lenders will double-check Julius's identity before approving a credit application

b)

Theo will not be able to open new lines of credit for at least 1 year

c)

The credit bureau has 30 days to resolve any errors in Theo’s credit report

d)

Late payments will be removed from Theo’s credit report for a fee

10.

A Fico score that is labeled as good will be between ​ (a)   and ​ (b)  

Choose from the below words
670
739
579
650
850
11.

What is the purpose of a credit report?

a)

To provide a free tool for you to track your finances and budget

b)

To compare the cost of different lines of credit

c)

To help lenders determine if you are a qualified candidate for credit

d)

To prove that you are authorized to work in the United States

12.

A person has a credit utilization ratio of 25% and they open a new credit card without changing their spending. Their utilization ratio will go ​ (a)   because they are ​ (b)   their credit limit.

Choose from the below words
down
increasing
up
decreasing
13.

If a potential lender checks your credit score and finds out it is above 750, you will ​ (a)   loan with a ​ (b)   interest rate.

Choose from the below words
receive a
low
be denied a
high
14.

In America, wages have ​ increased ​ (a)   than prices, and debt has ​ (b)   .

Choose from the below words
less
increased
more
decreased
15.

Which two parties are most interested in checking your credit score?

a)

A future employer

b)

A car dealership

c)

An apartment leasing office

d)

A college admissions office

16.

What is the interquartile range (IQR)?

a)

$872

b)

$314

c)

$301

d)

$164

17.

If 56 people were surveyed about their monthly car payment, how many pay between $141 and $455?

a)

14

b)

28

c)

42

d)

7

18.

Which statements are true?

a)

The median is $592

b)

The range is $872

c)

50% of respondents pay between $756 and $1013

d)

75% of respondents pay less than $756

19.

Data points ​ (a)   the mean has a ​ (b)  

Choose from the below words
clustered close to
low standard deviation
spread out far away from
skewed distribution
large interquartile range
20.

The histogram below shows data on rent prices for a representative sample of 500 US renters, based on the 2020 Census. All of the following statements are true, EXCEPT…

a)

The distribution of US rent prices is skewed to the right

b)

10 people reported a rent price of $2750

c)

The mean rent price is higher than the median rent price

d)

The median rent price is between $1000 and $1500 per month