WorksheetsUnit 3 Quiz (Credit) Review
Total questions: 20
Worksheet time: 9mins
Which of the following statements is true about this Schumer Box?
The APR for a borrower will always either be 8.99%, 10.99% or 12.99%
There is a permanent APR lower than 8.99%.
A 14.99% APR begins after the introductory period ends.
A borrower can never be charged more than a 14.99% APR.
Which of the following is NOT a recommended method for a teenager to start building credit?
Applying for a student loan
Use a prepaid credit card (gift card)
Get a secured credit card
Become an authorized user on a parent's credit card
Which country's national animal is the unicorn?
Wales
Sweden
Scotland
Denmark
Which type of loan typically features the highest interest rate?
Payday Loan
Auto Loan
Mortgage
Student Loan
Which of the following is most likely to have a fixed rate AND is an unsecured debt?
A mortgage
Auto loan
What is the name for the blob of toothpaste on a toothbrush?
A Kombatta
A Nurdle
A Squish
A Lokadoo
Walter and Jesse are discussing the best ways to pay back credit card debt. Which strategy would have the lowest overall cost?
Paying off the credit card bill in full every month
Paying 20% of the credit card balance every month
Making the minimum payment every month
Paying the minimum one month, full balance the next (Repeat)
Skyler took out a payday loan for $100 and receives a $15 fee. If she is unable to pay the loan off within 2 weeks Skyler will have to pay another $15 fee? If this happens every two weeks for a year, how much total will she pay in fees?
$150
$270
$390
$420
Tuco is about to go car shopping, and he has $3000 saved for a down payment. He expects the car he’s looking for to cost $15,000. If Tuco's top priority is having the lowest monthly payments possible, which advice should he follow?
Put $0 down and choose a loan with a long term length
Put $1000 down and choose a loan with a short term length
Put $2000 down and choose a loan with a short term length
Put $3000 down payment and choose a loan with a long term length
Is an avocado a fruit or vegetable?
Fruit
Vegetable
Mike is looking at a credit card offer and the Schumer Box states the APR for the card is set at 9.99% - 23.99%. Which statement is true?
Mike can assume most cardholders pay the lowest rate listed
Mike's APR will be within that range, depending on the strength of his credit history
Mike wants the highest APR in the range because he'll earn more
The APR on credit cards is usually fixed, so it won't be adjusted as long as Mike is a cardholder
Credit card disclosure: "Your due date is at least 21 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month." The 21 day timeframe known as a ______ period.
Honor
Forgiveness
Glory
Grace
Which singer's popularity was responsible for the creation of Google Images?
Taylor Swift
Beyonce
Rihanna
Jennifer Lopez
Gus is considering taking a loan for his new car. If he chooses a loan with a shorter term length, he will have __________ monthly payments, and he will pay __________ in total interest.
higher, less
higher, more
lower, less
lower, more
Which of the following statements correctly describes a feature of a credit card?
The payment amount is fixed every month
You need to have funds in a savings account to use the credit card for transactions
Paying the full balance on time each month is the only method to avoid interest
Interest is never charged
What is a key characteristic of secured loans?
They are typically used for personal loans
They allow the lender to take possession of the collateral if the borrower fails to repay
They do not require any collateral
They usually have lower interest rates compared to unsecured loans
What was the last letter added to the English alphabet?
W
J
Q
Z
Jane is planning to buy a new car. She has an excellent credit score. How will this help her in the financing aspect of her car purchase?
Bargaining with the dealer for a great sales price
Receiving a large down payment from the bank
Qualifying for a low interest rate on her car loan
Having a wide selection of term lengths for her car loan
Hank and Marie each buy a car for $20,000. Hank's monthly car payment is $200 more per month than Marie's. Which one of the following statements could explain this difference?
Hank chose a shorter term for his car loan, so his monthly payments are higher
Hank made a larger down payment, so his monthly payments are also larger
Marie chose a shorter term for her car loan, so her monthly payments are also lower
Marie has a lower credit score, so her interest payments are also lower
Saul has a credit card with a $1500 credit limit. His outstanding balance is currently $1200. What is the maximum amount he can now spend on this credit card?
$300
$1200
$1500
$2700
