WorksheetsFinancial Literacy SSPFL5
Total questions: 40
Worksheet time: 20mins
Not taxed until the money is withdrawn (In other words, you pay taxes on the money when it comes OUT of your account).
Traditional IRA
Roth IRA
A government program designed to help people who may not have access to things like a 401k at their job.
Social Security
Medicare
Which of these is LEAST LIKELY to determine credit worthiness?
Age
Income
What is an example of credit?
Credit card
Debit card
Creditworthiness is the ability to?
Repay a loan
Earn a high income
While credit is all or part of an amount a borrower may use, debt is
The amount owed
The amount available
A person’s reputation for paying debts based on past behavior. The best indicator of character is credit score.
True
False
Any time that a person defers payment, they are using
credit
cash
debit
check
Annual Income, Number of years working for same employer, Education, Debt-to-Income Ratio: Are all factors of
Credit Score
Loan Approval
Job Satisfaction
Health Insurance Premium
_______ is the ability to repay a loan.
Capacity
Interest
Collateral
Term
_______ is the ability to raise funds or have co-signers for a loan.
Capital
Interest
Collateral
Equity
What type of information is NOT found on a consumer's credit report?
Payment history
Credit inquiries
Medical history
Public records
Jose is applying for an automobile loan. The lender considers Jose creditworthy MOST LIKELY because Jose
has a stable job
has a high credit score
owns a house
has no outstanding debts
Which of these is LEAST LIKELY to determine credit worthiness?
Credit score
Income level
Age
Employment history
What is an example of credit?
A loan from a bank
Paying with cash
Receiving a gift
Using a debit card
Which person would most likely qualify for a car loan with the best (lowest) interest rate?
Jenny's Credit Score: 525
Mark's Credit Score: 630
Hank's Credit Score: 735
Bilal's Credit Score: 720
This information is from a credit report. How much did Leonard borrow at Furniture City?
$500
$750
$1000
$1250
This information is from a credit report. How much were Leonard's monthly payments?
$200
$350
$500
$750
Which item is NOT part of the credit report?
Personal information: Name, Social Security Number, Address, Employer
List of credit accounts, including open date, limit, balance, and payment history
Inquiries: Requests made by companies to view your credit report
Immigration status, ethnic origin, religion, and political affiliation
A credit score normally ranges from?
300 to 850
100 to 900
200 to 800
400 to 900
Anything of value that can be used to secure a loan is called:
Collateral
Asset
Liability
Equity
What are the 3 C's of Credit we studied?
Character, Capacity, Capital
Credit, Collateral, Condition
Cash, Credit, Collateral
Capital, Condition, Credit
The single most important factor of your credit score is known as...
Payment History
Credit Utilization
Length of Credit History
New Credit
A ________ ________ is a numeric representation of a person’s credit worthiness.
credit score
credit report
credit history
credit card
A software program used to determine credit scores is
FICO Score Calculator
Credit Karma
Experian
Equifax
A detailed record of a person’s credit history is known as:
Credit Report
Credit Score
Credit Card Statement
Bank Statement
A federal law called ______ allows you to receive one free copy of your credit report from each of these three company
Fair Credit Reporting Act
Consumer Credit Protection Act
Credit Card Accountability Responsibility and Disclosure Act
Truth in Lending Act
The agencies who monitors credit are called _________.
Credit Bureaus
Credit Unions
Credit Agencies
Credit Monitors
__________ __________ determines whether you get approved for a loan and what your interest rate will be.
Credit Score
Income Level
Employment History
Age
Amount of interest rate paid on a loan is known as _________.
Interest Rate
Principal
Amortization
Collateral
The basic concept of credit is:
Savings
Pay now, buy later
Something only people without high paying jobs need
Buy now, pay later
Which items do credit card and lending companies use to determine whether to lend you money or not? A. B. C. D.
Your credit bulletin
Your credit score
Your credit discount
Your credit dispatch
True or False? A 401(k) can only be offered through your employer.
True
False
Many people find it difficult to retire from the workforce because they
do not have a life insurance policy
do not have enough savings for retirement
cannot collect Social Security benefits
know their employers depend on their skills
What is a stock?
A stock is a share of ownership in a company.
A stock is a lending investment to the government or a company.
A stock is an insured bank account with high risk.
A stock is a type of investment that uses money from investors to purchase many different investment types.
A manageable debt-to-income ratio should be ____________ or less
40%
35%
56%
60%
