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WorksheetsFinance and Credit Quiz
Total questions: 26
Worksheet time: 18mins
Which loan typically has the highest interest rate?
Personal Loan
Auto Loan
Payday Loan
Student Loan
What does APR stand for?
Annual Payment Rate
Additional Percentage Rate
Average Payback Ratio
Annual Percentage Rate
True or False: A longer loan term usually means smaller monthly payments but more total interest paid.
True
False
What is the minimum payment on a credit card?
The full balance
A percentage of the balance
Half the interest
The total interest
Which is a fixed expense?
Groceries
Movie tickets
Rent
Gas
What does it mean to “carry a balance” on a credit card?
You paid the card in full
You owe money past the due date
You canceled the card
You earned cashback rewards
Which of the following is NOT one of the 5 C’s of Credit?
Credit History
Character
Capacity
Credit Score
What does “Character” refer to in the 5 C’s of Credit?
Your criminal record
Your job title
Your reputation and credit history
Your personality
What does “Collateral” mean?
The fees you pay on a loan
The backup plan for repaying a loan
An asset you pledge in case you can't repay the loan
Another name for your co-signer
Which statement about payday loans is TRUE?
They are a good long-term solution
They have low interest rates
They are due on your next payday
They help build credit
What is net income?
Your earnings before taxes
Your total savings
Your take-home pay after taxes and deductions
The total value of your assets
True or False: A high credit score usually means lower interest rates on loans.
True
False
Which loan type is best for someone building credit?
Personal loan
Credit builder loan
Payday loan
Title loan
If someone has “Capacity,” what does it mean?
They can borrow a lot of money
They have enough income to repay the loan
They work full-time
They have a high credit score
Why is it important to read your credit card statement each month?
To check your credit score
To see rewards points
To track spending and catch errors
It’s not important
Which item is important to consider when selecting a credit card?
Annual Percentage Rate (APR)
Fees
The look of the credit card
Both APR and fees
What is a common consequence of not managing credit properly?
Increased credit score
Lower interest rates on loans
Higher borrowing costs
More frequent loan approvals
Imagine you have a mortgage, a car loan, and a couple of credit cards. What role does this diversity of credit accounts play in your financial health?
It complicates financial management
It has no role or impact
It can demonstrate to lenders your ability to manage various types of credit responsibly
It reduces your credit score
What is the APR (interest rate) on this card for Purchases made during the first six months that a cardholder has this card?
0%
15.24%
23.24%
25.24%
After the introductory period, all consumers who have this Platinum Card will...
Pay the same A.P.R.
Qualify for an A.P.R. based on their creditworthiness
Pay the Penalty A.P.R. of 30.24%
Be charged an Annual Fee
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 person or a business with a strong credit score and the financial resources that make it likely they will be able to repay any loan.
(a)
When Kingston applies for a personal loan, the loan officer will assess his credit worthiness by checking:
Credit Report and Credit History
GPA and Transcripts
Parents Income and Net Worth
All answers are correct
This tells the creditor whether or not your can repay any debts.
Capacity
Collateral
Character
Capital
When Kingston applies for a personal loan, the loan officer will determine
whether or not to give him the loan based on what ?
His Credit Report and Credit History
His G.P.A. and high-schol or college Transcripts
His Parents Income and Net Worth & What type of car he drives.
