WorksheetsRMRW Lesson 3 Review
Total questions: 17
Worksheet time: 9mins
What is a credit score?
A measure of your income
A numerical representation of your creditworthiness
A list of your monthly expenses
A type of bank account
Which of the following actions can negatively impact your credit score?
Paying bills on time
Applying for multiple credit cards at once
Keeping credit card balances low
Checking your own credit report
What is the purpose of a checkbook register?
To track your credit score
To record deposits and withdrawals
To apply for loans
To calculate interest rates
Which of the following is a key component of budgeting?
Ignoring expenses
Tracking income and expenses
Spending more than you earn
Only saving money
What is a loan?
A gift of money
Money borrowed that must be repaid with interest
A type of savings account
A form of income
Which type of loan is typically used to purchase a home?
Personal loan
Auto loan
Mortgage
Student loan
What is a debit card used for?
Borrowing money from the bank
Making purchases directly from your bank account
Earning interest on savings
Applying for loans
How does interest work on a savings account?
You pay the bank for holding your money
The bank pays you for keeping your money with them
It decreases your account balance
It has no effect on your account
What is the main difference between a debit card and a credit card?
Debit cards are used for online purchases only
Credit cards require a PIN for every transaction
Debit cards withdraw money directly from your bank account
Credit cards do not affect your credit score
What does it mean to overdraw your bank account?
To deposit more money than you have
To withdraw more money than you have
To balance your checkbook
To apply for a loan
Which of the following is a benefit of maintaining a good credit score?
Higher interest rates on loans
Easier approval for credit cards and loans
More bank fees
Lower savings account interest
What is the primary purpose of a budget?
To increase spending
To manage and plan financial resources
To avoid paying taxes
To eliminate all expenses
What is the effect of a high interest rate on a loan?
It decreases the total repayment amount
It increases the total repayment amount
It has no effect on the repayment amount
It makes the loan free
What should you do if you notice an error in your checkbook register?
Ignore it
Correct it immediately
Close your bank account
Report it to the police
How can you improve your credit score?
By maxing out your credit cards
By making late payments
By paying bills on time
By avoiding all credit
What is the main advantage of using a debit card over cash?
It helps build credit
It offers rewards points
It is more secure and convenient
It has no spending limit
What is the term for the cost of borrowing money, usually expressed as a percentage?
Principal
Interest
Dividend
Equity
