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Credit/Debt Terms Review

Total questions: 37

Worksheet time: 19mins

Name
Class
Date
1.
How do you ruin your credit?
a)
Have someone Co-Sign your loan
b)
Not pay your bills
c)
Get a gas/Apartment card
d)
Cats
2.
Interest is: 
a)
A charge for lending money to a bank
b)
The amount owed for borrowing money
c)
the amount added into your savings when opening a bank account
d)
a charge for the convenience of accessing money stored in your bank account
3.
The "term" is the initial amount of money borrowed in a loan.
a)
True
b)
False
4.
Type of loan used specifically for purchasing a home is a __________
a)
Mortgage
b)
Student Loan
c)
Equity Line of Credit
d)
Credit Card
5.
Another name for open ended credit is ____________ credit
a)
Never ending
b)
Revolving
c)
Spinning
d)
Endless
6.
__________ is the entire amount of money you owe to lenders
a)
Bankruptcy
b)
Debt
c)
Obligation
d)
Duty
7.
Allowing goods and services to be used now with a promise of payment in the future.
a)
credit
b)
bankruptcy
c)
debtor
d)
foreclosure
8.

Using credit means a person will pay _______for something than it costs.

a)

less

b)

more

c)

same

d)

equal

9.

Why should you worry about having "good credit?"

a)

better credit terms

b)

something you can brag about

c)

it's the adult thing to do

d)

bad credit is very expensive to live with

10.

A credit score in the 500s would be defined as...

a)

good

b)

poor

c)

excellent

d)

fair

11.

Which One Is A Credit Reporting Agencies ?

a)

Cpm Credit Union

b)

Carfax

c)

Chase Bank

d)

Equifax

12.

What Is Late Payment Fee ?

a)

A Payment That Is Due When You Fail To Make Payment On Time

b)

Weak Matches

c)

Punctual Owning Payable Unsettled

Debt

d)

Overdue

13.

Failure to pay back a loan.

a)

Default

b)

Interest

c)

Principal

d)

Repossession

14.

The annual rate of interest that is charged for using credit

a)

APR

b)

Fixed Rate

c)

Variable Rate

d)

Finance Charge

15.

The total amount of money owed lenders or creditors.

a)

Loan

b)

Debt

c)

Credit

d)

Collateral

16.

Something of value that a borrower lets the lender claim if a loan is not repaid.

a)

Loan

b)

Debt

c)

Credit

d)

Collateral

17.

What is a credit limit?

a)

The maximum amount you can borrow on a credit card

b)

The minimum payment required each month

c)

The interest rate on a credit card

d)

The total amount of debt you owe

18.

What is a credit score?

a)

A number that represents your creditworthiness

b)

The amount of money you owe

c)

The interest rate on your loans

d)

The total amount of credit available to you

19.

What is a secured credit card?

a)

A credit card that requires a security deposit

b)

A credit card with no spending limit

c)

A credit card with a fixed interest rate

d)

A credit card that offers rewards

20.

Which of the following is a consequence of having a low credit score?

a)

Lower interest rates on loans

b)

Higher chances of loan approval

c)

Higher interest rates on loans

d)

More credit card offers

21.

What Is A Returned Payment Fee ?

a)

A Charge Incurred When A Consumer Bounces A Payment

b)

Something You Owe To The Bank

c)

Gifting Someone

d)

Declined Payment

22.

The original amount in a bank account OR borrowed for a loan

a)

Interest

b)

Principal

c)

Term

d)

Credit Score

23.

A small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit

a)

Gift Card

b)

Debit Card

c)

Credit Card

d)

Birthday Card

24.

An initial payment made when something is bought on credit

a)

Debt

b)

Down Payment

c)

Principal

d)

Interest

25.

An installment loan that provides money for a car

a)

Personal Loan

b)

Auto Loan

c)

Mortgage

d)

Student Loan

26.

Which of the following statements comparing credit and debit cards is TRUE?

a)

Businesses accept credit cards more often than debit cards.

b)

Credit card companies provide you with a monthly statement while debit cards do not.

c)

When you use a credit card, the money comes directly from your bank account.

d)

With debit cards, you are spending your own money, with credit cards you are promising to pay the money back.

27.

When borrowing money, the longer your term length, the _______________ your monthly payments and the _______________ the total interest you will pay.

a)

lower, higher

b)

lower, lower

c)

higher, lower

d)

higher, higher

28.

Money owed to another person or company is considered to be _____.

a)

credit

b)

debt

c)

equity

d)

collateral

29.

A lien is ...

a)

the increase in value of a home over time; the difference between the amount owed and what the home could be sold for

b)

a legal claim (or right to own) against an asset until the debt (loan) is repaid

c)

the loss of value of an asset over time

d)

something owned (that has value) offered as security on a debt; if the debt is not repaid as agreed, the item is forfeited to the lender

30.

An asset that increases in value over time is _____.

a)

Equity

b)

Depreciating Asset

c)

Appreciating Asset

d)

Negative Equity

31.

This is the increase in value of a home over time or the difference between the amount owed and what the home could be sold for.

a)

Negative Equity

b)

Equity

c)

Interest

d)

Principal

32.

Depreciating Assets ...

a)

Lose value over time

b)

Increase in value over time

c)

are offered as security on a debt

d)

are legal claims (or right to own) against an asset until a debt is repaid

33.

The _____ is the amount of time, in months, that you'll be making payments on a loan.

a)

interest

b)

principal

c)

term

d)

rate

34.

Which is not considered to be a common credit card fee?

a)

Annual fee

b)

Balance transfer fee

c)

Under Limit Fee

d)

Cash advance fee

35.

Select all the main credit card types

a)

VISA

b)

Mastercard

c)

American Express

d)

Disney

36.
The amount charged if your payment is received after the billing due date.
a)
late payment fee
b)
overdue fee
c)
withdrawal fee
d)
loser fee
37.
The amount you must pay on a credit card, based on a percentage of the outstanding balance.
a)
minimum fee
b)
minimum payment
c)
monthly statement
d)
minimum monthly interest charge