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Credit Cards. School Loans. Auto Loans

Total questions: 45

Worksheet time: 22mins

Name
Class
Date
1.

Having a grace period means _________________________.

a)

you need to pay right now

b)

having time to pay back the money you owe

c)

how much your late fee is

d)

how much the credit limit is

2.

Your creditworthiness is based on ____________________, _____________________, _________________________.

a)

how much in loans you already have

b)

how much income you have

c)

what your payment history is like

d)

All answers are correct

3.

An annual fee is ___________________________.

a)

how much you pay in interest

b)

the price you have to pay for a card every year

c)

the penalty you pay for being late

d)

always $50

4.

The introductory rate is _____________________________.

a)

the low interest rate you will pay for a short time

b)

how much you pay every year just for having the card

c)

how much your credit limit is

d)

the time you have before you have to pay back the money

5.

The benefits of having a credit card might be ___________________, _______________________, and ______________________.

a)

cash back

b)

discounts at stores

c)

having an option for money if you don't have it saved

d)

All of the answers are correct

6.

A late fee is _______________________.

a)

how much you pay every year for having the card

b)

the penalty you pay for making the payment after the deadline

c)

your credit limit

d)

always $50

7.

The best way to spend on a credit card (if you can) is _________________________________________.

a)

to spend very little on it and always pay off in full

b)

max out your credit limit

c)

make the minimum payments

d)

be late on the payments

8.

The worst way to work with a credit card is to ___________________________.

a)

use less than 50% of the credit limit

b)

pay more than the minimum payment (if you can)

c)

pay off the balance in full (if you can)

d)

max out the credit limit and pay only the minimum payment

9.
True or false: scholarships are automatically renewed each year.
a)
True
b)
False
10.
True of false: federal student aid can be used for tuition, books, supplies, and room and board.
a)
True
b)
False
11.
Which application must be filled out if students want to be eligible for federal aid?
a)
College
b)
FAFSA
c)
FASSA
d)
Employment
12.
Which types of student loans are typically cheaper in the end?
a)
Federal student loan
b)
Private student loan
13.
True or false: some scholarships require students to maintain a certain GPA.
a)
True
b)
False
14.
What is one indication that a scholarship might be a scam?
a)
It is renewable
b)
It comes from someone other than the federal government
c)
It guarantees students money
d)
It provides money for just one year
15.
What type of loan might students have to repay while they are still in school?
a)
Federal student loans
b)
Private student loans
16.
True or false: students should borrow more student loan money than they need.
a)
True
b)
False
17.

All of the following are costs of going to college EXCEPT...

a)

Tuition and fees

b)

Room and board

c)

Textbooks and school supplies

d)

Scholarships and grants

18.

Why should you file the FAFSA as early as possible?

a)

It can help your chances of being accepted into schools

b)

Aid is given out on a first-come, first-serve basis

c)

You're guaranteed to get more merit-based scholarships

d)

You'll get a lower interest rate on federal student loans

19.

When filing the FAFSA, you are eligible for all of the following EXCEPT:

a)

Grants and Scholarships

b)

Private Student Loans

c)

Work-Study

d)

Federal Student Loans

20.

Which is TRUE about the FAFSA?

a)

You only need to file the FAFSA 1x in your college career

b)

Your parents must earn below a set amount for you to apply

c)

You need to file it at the start of every quarter/semester

d)

There is no cost to file the FAFSA

21.

What can happen if you don't make payments towards your student loans?

a)

You may lose your car or home

b)

Your loan balance may become due in full, but no interest

c)

You may lose your car or home

d)

Your credit score may suffer

22.

For the majority of students, this is the best loan option.

a)

federal loan

b)

private loan

23.

This loan is not recommended unless you have exhausted all other options.

a)

private loan

b)

federal loan

24.

Which type of loan should a student pursue first?

a)

federal loan

b)

private loan

25.

What is one thing a student should do before pursuing a private loan?

a)

look for additional scholarships

b)

drop out of school

c)

look at private colleges

26.

What is one thing a student should do before pursuing a private loan?

a)

get a part-time job to help cover costs

b)

decide not to go to college

c)

go out of state for college

27.

________ loans should be a last resort.

a)

Private

b)

Federal

c)

Direct

d)

Direct PLUS

28.

A formal and extensive record of how good an individual is at maintaining their credit and paying their current and past debts in a timely manner.

a)

Credit score

b)

Loan terms

c)

Lender

d)

Credit history

29.

The larger your down payment amount, the (larger/smaller) the loan amount, and (larger/smaller) your monthly car payments.

a)

Larger/larger

b)

Larger/smaller

c)

Smaller/larger

d)

Smaller/smaller

30.

The shorter your term length, the (higher/lower) your monthly payments, and the (higher/lower) the total interest you will pay.

a)

Higher/higher

b)

Higher/lower

c)

Lower/lower

d)

Lower/higher

31.

What is the main difference between an auto lease and an auto loan?

a)

On both auto loan and auto lease the borrower is purchasing a car

b)

On both auto loan and auto lease the borrower will have to return the car

c)

On an auto loan the borrower is purchasing the vehicle while on a lease the borrower returns the car at the end of the terms

d)

On an auto loan the borrower will have to return it while on a lease the borrower is purchasing the vehicle

32.

What are the 5 basic types of loans?

a)

Automobile

b)

Payday

c)

Mortgage

d)

Federal/Student

e)

Small Business

33.

What does principle stand for?

a)

% the lender charges you for borrowing the money.

b)

the amount of money being borrowed.

c)

time given to pay back the loan.

d)

Assets you put up against the loan as a safeguard for the lender against defaulted payments.

34.

Interest Rate?

a)

% the lender charges you for borrowing the money.

b)

the amount of money being borrowed.

c)

time given to pay back the loan.

d)

Assets you put up against the loan as a safeguard for the lender against defaulted payments.

35.

What is a Co-Signer?

a)

if you default on your payments your co-signer is responsible for the payments.

b)

not being able to make a payment or payments.

c)

Stays the same throughout the duration of the loan term. Predictable with higher interest rates.

d)

Can fluctuate depending on the index. Unpredictable with lower interest rates.

36.

Variable Rate is?

a)

if you default on your payments your co-signer is responsible for the payments.

b)

not being able to make a payment or payments.

c)

Stays the same throughout the duration of the loan term. Predictable with higher interest rates.

d)

Can fluctuate depending on the index. Unpredictable with lower interest rates.

37.

The larger the down payment on a vehicle, the _____________ the principal loan amount will be. 

a)

Higher

b)

Lower

c)

No Change

d)

Not Enough Information

38.

Which of the following variables is NOT needed to calculate the cost of a loan?

a)

Principal

b)

Time/Years

c)

APR

d)

Your Income

39.

Calculate total loan cost if principal is $10,000 at 4% APR for 4 years (use simple interest I = PxRxT +P)

a)

$10,400

b)

$11, 600

c)

$16,000

d)

$19, 200

40.

If the amount of an Auto Loan is $22,000 financed with no intereest for 60 months, the monthly payment will _____.   (Divide by 60)

a)

$306.67

b)

$386.76

c)

$376.87

d)

$366.67

41.

What logo is this

a)

Cadillac

b)

Chevy

c)

Ford

d)

Tesla

42.

What car logo is this

a)

Pontiac

b)

Buick

c)

lambo

d)

Honda

43.

What is this logo

a)

Buick

b)

Pontiac

c)

Teala

d)

GMC

44.

What car logo is this

a)

Chevy corvette

b)

Mclaren

c)

Mustang

d)

Ford

45.

Name this car logo:

a)

BMW

b)

Volvo

c)

Saab

d)

Volkswagen