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Understanding the 5 C's of Credit

Total questions: 27

Worksheet time: 2hrs 15mins

Name
Class
Date
1.

Which one of the 5 c's covers whether you can make the payments on your loans?

a)

conditons

b)

collateral

c)

capacity

d)

capital

2.

which of the 5 c's would cover the interest of your loan?

a)

capital

b)

capacity

c)

conditions

d)

collateral

3.

Which of the 5 C's describes how much money you have to make a down payment?

a)

capital

b)

character

c)

capacity

d)

collateral

4.

Which one of the 5C's include your credit score, remember what I said about your reputation with borrowing money?

a)

capacity

b)

capital

c)

conditions

d)

character

5.

Which of the 5 c's uses trade as a form of insurance incase you cannot pay your loan?

a)

conditions

b)

collateral

c)

capacity

d)

capital

6.

name something you could use as collateral?

4 lines
7.

What is one benefit of a checking account?

4 lines
8.

What is one benefit of a savings account?

4 lines
9.

which of the 5 c's covers the interest of your loan

a)

capacity

b)

conditions

c)

collateral

d)

capital

10.

which one of these is a type of investment?

a)

the streets

b)

being a rapper

c)

buying stocks

d)

mutual funds

11.

which type of institution offers better benefits for its members?

a)

bank

b)

credit union

12.

What is the definition of a financial institution?

4 lines
13.

a PS5 from gamestop is 500 dollars, however sales tax in florida is 6%, so how much are you paying in total?

4 lines
14.

What is the simple interest formula?

4 lines
15.

Interest is the fee banks charge for borrowing money

a)
True
b)
False
16.

Banks will pay you interest for banking with them

a)
True
b)
False
17.

your credit score will effect how much you pay for loans

a)
True
b)
False
18.

What does principle mean in the simple interest formula?

4 lines
19.

what does the p stand for in the simple interest formula

a)

paper

b)

planning

c)

principle

20.

what is rate in the simple interest formula

a)

the amount you make an hour

b)

the percent the bank charges

c)

the percent the bank gives

d)

movie or video game rating

21.

in the simple interest formula time is calculated in months or years

a)

months

b)

years

22.

what mathmatical function do you use to calculate simple interest?

a)

division

b)

addition

c)

multiplication

d)

exponents

23.

Kalel is buying a tank to take over Orlando, Adrain is selling it to him for 250,000. Kalel comes to Troy to borrow 250k. Troy says it give him the money for 7% interest for 12 years. How much is the INTEREST ONLY.

4 lines
24.

Carlos is trying to buy a feature from Onyx. Onyx is charging 10,000, but will take payments at 3.5% interest for 5 years. How much is Carlos paying for the feature in total?

4 lines
25.

Alba wants to start a clothing brand, she needs a loan for 20,000. Marlon will finance her at 12% interest for 3 years. How much is Alba paying Marlon back in total?

4 lines
26.

Dunja wants a lifetime airline ticket to Serbia to travel home whenever she wants. American Airlines is offering a lifetime flight to any destination for 25,000. Fallilou works for the bank, he will charge her 4% interest for 10 years. How much is she paying for the ticket?

4 lines
27.

Beli wants to open her dream snail farm, she needs 10,000 for the land, snails, and food. Josh is offering her a loan at 5% for 5 years while while Marlon is offering her a loan at 3% for 6 years. Which one should she take?

a)

Marlon

b)

Josh