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WorksheetsLoans, Credit and Credit Card Test
Total questions: 45
Worksheet time: 23mins
What is the difference between revolving credit and installment credit?
Revolving credit has a fixed payment schedule while installment credit renews automatically
Revolving credit renews automatically while installment credit has fixed payments
They are the same thing with different names
Neither type of credit requires monthly payments
What is an appreciating asset
An asset that increases value over time
An asset that loses value over time
an original amount of a loan or asset
None of the answers
What is a depreciating asset
An asset that increases value over time
An asset that loses value over time
an original amount of a loan or asset
None of the answers
What is collateral when using for loans?
A type of credit score
The monthly payment amount
An asset that secures the loan
None of the other answers given
Which term describes the difference between what you owe on your home and what you could get from the current market value
Lien
Equity
Interest
Answer not given
The additional cost of borrowing money you need to pay is called
Lien
Equity
Interest
Answer not given
A legal claim against (or right to take/own) an asset until the debt is repaid, usually put on homes.
Lien
Equity
Interest
Principal
What factor most heavily influences a credit score?
Payment history
Current salary
Education level
Age
The length of time you have to repay a loan is called the
Depreciation
Lien
Principal
Term
Answer Not given
What is debt
Money saved for future use
Money invested in stocks
Money owed to others
Money earned from work
What is depreciation?
The increase in value of an asset over time
The transfer of asset ownership
Delayed payments with accruing interest
The stabilization of asset value
Answer not given
What is forbearance?
Complete loan forgiveness
Interest-free payment period
Immediate loan repayment
Delayed payments but in which interest continues to acrue
Answer not given
What does FAFSA stand for?
Federal Application for Student Aid
Financial Aid Foundation for Student Assistance
Free Application for Federal Student Aid
Federal Assistance for Student Academics
What characterizes negative equity?
When payments are ahead of schedule
When the asset value exceeds the loan amount
When loan interest rates decrease
When an asset's value is less than what is owed
Answer not given
Which type of aid must be repaid?
Grants
Student loans
Scholarships
Work-study earnings
All of the above answers must be repaid
What is a key feature of subsidized loans?
They accrue interest immediately
They don't accrue interest for a set period
They require immediate repayment
They have variable interest rates
What is the primary purpose of a Student Aid Report?
To show loan payment history
To display current loan balances
To list available scholarships
To show federal aid eligibility
What is Return on Investment (ROI)?
The total cost of an investment
The initial amount invested
The time taken to repay a loan
The measurement of gain or loss relative to investment amount
What is an unsubsidized loans?
An award Presented to student who display high educational excellence
Financial Aid that does not need to be repaid usually awarded based on Essay and achievements
A program that allows a student to work part time while continuing their studies
A Federal Loan that are based on a student's financial need and don't accrue interest for a set period of time
Answer not given
What is a Subsidized loan?
An award Presented to student who display high educational excellence
Financial Aid that does not need to be repaid usually awarded based on Essay and achievements
A program that allows a student to work part time while continuing their studies
A Federal Loan that are based on a student's financial need and don't accrue interest for a set period of time
Answer not given
What is a Scholarship?
A set of tests that qualify to earn a college credit if they pass them
Financial Aid that does not need to be repaid usually awarded based on Essay and achievements
A program that allows a student to work part time while continuing their studies
Loans that are made by banks, credit unions or other organizations with terms and conditions set by lenders.
What is Return on Investment (ROI)?
The total cost of an investment
The initial amount invested
The time taken to repay a loan
The measurement of gain or loss relative to investment amount
The primary purpose of FAFSA is to
Secure private loans
Determine financial aid eligibility
Guarantee scholarships
Calculate loan interest
What is the term when you fail to repay a loan on time
Collateral
Installments
Interest
Principal
Answer not given
A lender who uses deceptive, unfair or fraudulent practice on borrowers that are desperate for cash are considered what type of lender?
Traditional Credit lenders
Non Credit Lenders
Predatory Lenders
The Equal Credit Opportunity Act prohibits this from ever happening
A statistical number used to represent a consume's creditworthiness is considered
A Credit Score
A Credit Report
Credit Bureau
Answer not given
A historical detailed record of your financial history and credit activity
A Credit Score
A Credit Report
Credit Bureau
This is broken into 4 areas, personal information, credit history, public record, Inquires
A Credit Score
A Credit Report
Credit Bureau
A company that collects credit rating information and makes it available to creditors.
A Credit Score
A Credit Report
Credit Bureau
A loan (contract) that outlines a specified number of repayment of terms such as the amount of the payment, the number of payments that will be made and the interest rate. Examples of include automobile loans, mortgages, and education loans.
Closed End Credit
Open End Credit
Revolving Credit is also known as
Closed End Credit
Open End Credit
Installment Credit is also known as
Closed End Credit
Open End Credit
A type of credit with the unique feature of that you can pay the loan balance in a single payment or a series of equal or unequal payments, usually monthly. You choose how much to pay each month as long as you meet the minimum monthly payment.
Closed End Credit
Open End Credit
What part of the Credit Report will you find your Credit Report Number?
Personal Information
Inquiry
Public Record Information
Credit Information
What part of the Credit Report will you find a soft or hard pull of your credit report?
Personal Information
Inquiry
Public Record Information
Credit Information
What part of the Credit Report will show if you have filed bankruptcy, had accounts turned over to collection agencies, show tax liens, and foreclosures?
Personal Information
Inquiry
Public Record Information
Credit Information
What part of the Credit Report will show your past address, current address and phone numbers?
Personal Information
Inquiry
Public Record Information
Credit Information
What part of the Credit Report will show your credit limits, and payment history on credit cards?
Personal Information
Inquiry
Public Record Information
Credit Information
When applying for a loan, the higher a person's credit score/rating the
Longer the payment period will be for the loan
Lower the interest rate will be for the loan
Higher the interest rate will be for the loan
Shorter the payment period will be for the loan
A sum of money borrowed for a certain amount of time is called a....
loan
down payment
interest
borrow
What should you NOT use a loan to purchase?
A house
Tuition for higher education
Airline tickets to your dream vacation
A car
overdraft protection fee
Minimum payment fee
When getting a loan, are you looking for high interest rate or low interest rate?
High Interest rate
Low Interest rate
When finding a Savings account at a bank to keep your money, are you looking for high interest rate or low interest rate?
High Interest rate
Low Interest rate
