Credit Basics
8 months ago
mrsjamestk
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17 QuestionsShow answers
  • Question 1
    30 seconds
    Q. All of the following are dangers of credit, EXCEPT:
    answer choices
    Overspending
    Can be dangerous in tough economic times
    Can increase your financial options
    Can be expensive
  • Question 2
    10 seconds
    Q. True or False: Credit can lead to overspending.
    answer choices
    True
    False
  • Question 3
    30 seconds
    Q. Which of the following is NOT a factor to consider when taking out a loan?
    answer choices
    Length of the loan
    Total Cost of the loan
    Impact of the monthly payment on your budget
    How much time it takes to receive the loan
  • Question 4
    30 seconds
    Q. How do you ruin your credit?
    answer choices
    Have someone Co-Sign your loan
    Not pay your bills
    Get a gas/Apartment card
    Cats
  • Question 5
    180 seconds
    Q. Which of the following would IMPROVE your credit score. 
    answer choices
    Closing out old credit cards. 
    Paying off your credit card bill. 
    Using a large portion of your credit limit. 
    Opening a new savings account. 
  • Question 6
    180 seconds
    Q. Interest is: 
    answer choices
    A charge for lending money to a bank
    The amount owed for borrowing money
    the amount added into your savings when opening a bank account
    a charge for the convenience of accessing money stored in your bank account
  • Question 7
    30 seconds
    Q. The "term" is the initial amount of money borrowed in a loan.
    answer choices
    True
    False
  • Question 8
    30 seconds
    Q. ______________ is the amount of money you pay to use someone else's money.
    answer choices
    Interest
    Credit
    Principal
    Term
  • Question 9
    30 seconds
    Q. An example of closed-ended credit is a(n) _______________
    answer choices
    Installment loan
    Credit card
    Equity Credit line
  • Question 10
    30 seconds
    Q. Type of loan used specifically for purchasing a home is a __________
    answer choices
    Mortgage
    Student Loan
    Equity Line of Credit
    Credit Card
  • Question 11
    30 seconds
    Q. Another name for open ended credit is ____________ credit
    answer choices
    Never ending
    Revolving
    Spinning
    Endless
  • Question 12
    30 seconds
    Q. This is when the interest rate will remain the same for the life of the loan
    answer choices
    Adjustable rate
    Balloon rate
    Never changing rate
    Fixed rate
  • Question 13
    30 seconds
    Q. __________ is the entire amount of money you owe to lenders
    answer choices
    Bankruptcy
    Debt
    Obligation
    Duty
  • Question 14
    30 seconds
    Q. Money you pay up front toward the purchase to reduce the loan amount
    answer choices
    Down payment
    Up front payment
    Principal
    Interest
  • Question 15
    30 seconds
    Q. Allowing goods and services to be used now with a promise of payment in the future.
    answer choices
    credit
    bankruptcy
    debtor
    foreclosure
  • Question 16
    30 seconds
    Q. All of the following are examples of benefits of credit, EXCEPT:
    answer choices
    Increase your standards of living
    Safer than cash
    Buying power
    Can tie up future income
  • Question 17
    30 seconds
    Q. Which is NOT a way to establish credit?
    answer choices
    Creating an account with a bank
    Obtaining a credit card
    Getting married, having a few kids, buying some stuff, retiring to Florida, and dying.
    Having a parent co-sign a card
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