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WorksheetsU4 Fin Vocab Quiz #4
Total questions: 21
Worksheet time: 16mins
Maya just received her new credit card. She notices a charge on her statement labeled as an "Annual Fee." What does this mean?
The percentage interest rate paid on a yearly basis on all purchases using that credit card.
A yearly fee charged by the credit card company for the convenience of having/using a credit card.
A fee charged for cash advances on that credit card.
A fee charged for transferring a balance to another card.
Neil is comparing different credit card offers. Each card lists an APR in its terms and conditions. What does the APR tell Neil about these credit card offers?
The maxiumum amount of fees he can be charged annually for using the card.
The interest rate he will be charged for purchases made with the card if he doesn't pay off those purchases within the grace period.
The minimum amount of interest charged on the outstanding balance on his card each month.
The penalty interest rate he will pay on purchases if he is more than 30 days late on any payments.
Which of the following best describes the purpose of a balance transfer on a credit card?
To move existing credit card debt to another card with a lower interest rate.
To make a purchase using a debit card instead of a debit card.
To increase the credit limit on one card by applying for another card with the same bank.
To close a credit card account by paying off the balance in full.
Which of the following best describes how a car title loan works?
The lender takes ownership of the car.
The borrower uses their car title as security for the loan.
The loan is used for buying a used car.
The loan is given without any collateral.
Scarlett has just received her first credit card offer and wants to understand her rights as a consumer, as well as the basic information on interest rates and fees, before applying for a card. Where can she find a clear and easily understood disclosure of that information about this credit card?
The CARD Act of 2009 legislation.
The credit card billing statement.
The Schumer box in the credit card agreement.
The Consumer Protection Bureau of the Federal Trade Commission.
What is Consumerism?
The idea that increasing the consumption of goods and services is always desirable in an economy.
A method of saving money by limiting consumer spending each month.
A type of economic system based on supply and demand.
A strategy for paying off debt.
Arjun's friend needs a loan but lacks sufficient credit history. Arjun agrees to apply for a loan along with his friend, making himself responsible for the debt if his friend is unable to pay. What is this called?
Car Title Loan
Revolving Loan
Cosigning
Collateral
What is a Credit Bureau?
A company that offers loans to people with bad credit.
A company that collects information about your credit history.
A company that sets interest rates for credit cards.
A company that issues credit cards.
Which of the following is the term that describes the maximum amount you can borrow on a credit card?
Maximum Out of Pocket Expense
Credit/Debt Ratio
Credit Limit
Interest Rate
What are the top two factors that influence your Credit Score?
The total amount of debt you owe compared with how much credit you have available to borrow and your payment history.
The mix types of credit you use and your debt to credit ratio
The number of credit accounts you have opened in the past year and your payment history
Your payment history and the length of your credit history
Ava has several credit card debts with different interest rates. She decides to pay off the debt with the highest interest rate first while making minimum payments on the others. What strategy is Ava using?
Debt Consolidation Method
Avalanche Method
Snowball Method
50/30/20 Method
Lily has a credit card bill due on the 1st of every month. This month, she forgets to make her payment and is now 30 days late. In the context of credit, what is this situation called?
Late Fee Penalty
Default Interest Rate
Account in delinquency
Overdraft Protection
What is a FICO Score?
Debt to Credit Ratio
A method of calculating interest rates on credit cards.
A type of loan payment calculation method.
A credit rating provided to lenders to assess a borrower's trustworthiness.
What is a Grace Period?
A period during which no interest will be charged on your credit card purchases.
A period during which a special interest rate is applied for purchases before a regular rate is charged.
A period during which you can transfer a balance without a fee.
A period during which you can increase your credit limit without having another credit check on your credit report.
Which of the following is NOT a possible outcome of Identity Theft
Forgiveness of your student loan balance.
new credit card accounts opened in your name.
unpaid medical bills in your name for services you didn't receive.
collection liens on your earnings from collection agencies.
What is an Installment Loan?
A loan that is repaid with a single payment with no interest.
A loan that is repaid with variable interest rates depending upon the number of payment installments.
A loan amount that you can take out in installments over time to avoid higher interest rates.
A loan that is repaid over time with a set number of scheduled payments.
Ponzi Schemes, Pyramid Schemes, and Sweepstakes Scams are all examples of what type of financial fraud?
Seller/Shopping Scams
Imposter Scams
"Get Rich Quick" Scams
Identity Theft
Which type of loan is an example of Predatory Lending?
Installment Loan
HELOC loan
Mortgage Loan
Payday Loan
Upload or hand in the images (without written definitions!) of the TWO (2) terms from this unit you have selected. Then explain how the images you have created explain the meaning of the selected words.
PLEASE NOTE, you may NOT have written definitions included in your images or you will not receive credit for this question.
All of the following actions lead to the payment of a credit card fee EXCEPT...
Using your credit card to get cash from an ATM.
Using your credit card to purchase items in a foreign country.
Paying your credit card bill ten days after the Due Date.
Paying your credit card bill in full and on time every month.
BONUS QUESTION: Is there a word from this unit that isn't on this quiz that you know well? Add the word and its definition here and earn a bonus point!
