EverFi Financial Literacy Lesson 5: Credit and Debt
a minute ago
brharrison
Save
Edit
Host a game
Live GameLive
Homework
Solo Practice
Practice
30 QuestionsShow answers
  • Question 1
    30 seconds
    Report an issue
    Q.

    Using a loan could help with the purchase of which of the following?

    answer choices

    A new television

    A dream wedding

    A house

    Airline tickets to your dream vacation

  • Question 2
    30 seconds
    Report an issue
    Q.

    When are loans a good option to use?

    answer choices

    To pay for airline tickets to your dream vacation

    When paying for higher education

    To buy that new television

    For a dream wedding

  • Question 3
    30 seconds
    Report an issue
    Q.

    What should you NOT use a loan to purchase?

    answer choices

    A house

    Tuition for higher education

    Airline tickets to your dream vacation

    A car

  • Question 4
    30 seconds
    Report an issue
    Q.

    Which item is important to consider when selecting a credit card?

    answer choices

    Annual Percentage Rate (APR)

    Fees

    The look of the credit card

    Both APR and fees

  • Question 5
    30 seconds
    Report an issue
    Q.

    Which of these items is NOT important to consider when selecting a credit card?

    answer choices

    Annual Percentage Rate (APR)

    The look of the credit card

    Credit limit

    Penalties and Fees

  • Question 6
    30 seconds
    Report an issue
    Q.

    Annual Percentage Rate (APR), credit limit, and penalties and fees are important to consider when _____.

    answer choices

    Choosing a financial advisor

    Choosing a credit card

    Looking at your credit score

    Selecting a financial institution

  • Question 7
    30 seconds
    Report an issue
    Q.

    What is NOT a benefit of having a good credit score?

    answer choices

    When you need a loan, you'll have more loan offers to pick from.

    You'll get better interest rates on your loans.

    It will be easier to get an apartment.

    You'll get accepted to better education institutions.

  • Question 8
    30 seconds
    Report an issue
    Q.

    What is a benefit of having a good credit score?

    answer choices

    Loan sharks will be less likely to bother you.

    You'll get accepted to better education institutions.

    You'll get more job offers.

    When you need a loan, you'll have more loan offers to pick from.

  • Question 9
    30 seconds
    Report an issue
    Q.

    Having a great credit score will make it easier for you to get into a better educational institution.

    answer choices

    TRUE

    FALSE

  • Question 10
    30 seconds
    Report an issue
    Q.

    Secured loans are less costly than unsecured loans because _________.

    answer choices

    They usually have a lower interest rate.

    They require collateral.

    They are less risky for the financial institution.

    All of these are true.

  • Question 11
    30 seconds
    Report an issue
    Q.

    The cost of a secured loan is typically lower than the cost of an unsecured loan because _______.

    answer choices

    it requires collateral.

    the loan takes longer to get.

    it has high interest rates.

    your parents will make sure you pay it back.

  • Question 12
    30 seconds
    Report an issue
    Q.

    Which of the following is NOT a feature that makes a secured loan less costly than an unsecured loan?

    answer choices

    A high interest rate

    Collateral

    Less risk for the financial institution

    All of these are correct

  • Question 13
    30 seconds
    Report an issue
    Q.

    To maintain a good credit score you must ______.

    answer choices

    manage your debt wisely.

    check your credit score every week.

    have credit monitoring.

    have many open credit cards.

  • Question 14
    30 seconds
    Report an issue
    Q.

    What will happen to your credit score if you do not manage your debt wisely?

    answer choices

    You won't be able to track your credit score

    Your credit score will go up

    Your credit score will go down

    It will not affect your credit score

  • Question 15
    30 seconds
    Report an issue
    Q.

    Not managing your debt wisely can result in ________.

    answer choices

    An increase in your credit score

    A decrease in your credit score

    Inaccessible credit score

    No change in your credit score

  • Question 16
    30 seconds
    Report an issue
    Q.

    Recommended methods to protect yourself from identity theft and fraud include_______.

    answer choices

    Placing a credit freeze with the credit bureaus.

    Monitoring your credit report every 2-3 years.

    Allowing inaccurate information to be removed from your report after 7 years

    Utilizing a specialty locking or monitoring service.

  • Question 17
    30 seconds
    Report an issue
    Q.

    Which of the following will help you protect yourself from identity theft and fraud?

    answer choices

    Regularly monitor your credit report.

    Contact lenders and credit bureaus to address incorrect information.

    Freeze your credit.

    All of the above.

  • Question 18
    30 seconds
    Report an issue
    Q.

    Which of the following is NOT a recommended method to protect you from identity theft?

    answer choices

    Expensive specialty locking or monitoring service.

    Place a credit freeze with the credit bureaus.

    Regularly monitoring your credit report.

    Contacting lenders and credit bureaus to report inaccurate information.

  • Question 19
    30 seconds
    Report an issue
    Q.

    Paying only the minimum balance on your credit card can lead to...

    answer choices

    an increase in your credit score

    paying more interest.

    late fees

    All of the above

  • Question 20
    30 seconds
    Report an issue
    Q.

    All of the following are benefits to paying the full balance on your credit card each month EXCEPT:

    answer choices

    Your credit score can decrease.

    You won't have to pay interest.

    You won't have to pay any late fees.

    Your credit score can increase.

  • Question 21
    30 seconds
    Report an issue
    Q.

    Benefits to paying the full balance of your credit card each month include:

    answer choices

    Paying more in interest

    Decreasing your credit score

    Not having late fees

    Increasing your credit score

  • Question 22
    30 seconds
    Report an issue
    Q.

    When looking for pre-approval on a car loan you should...

    answer choices

    get a loan from the car dealer directly to keep things simple.

    get a loan from the car dealer directly to keep things simple.

    select the loan that has the longest repayment period.

    compare pre-approval offers and select the one that is best for you.

  • Question 23
    30 seconds
    Report an issue
    Q.

    When looking for pre-approval on a car loan you should NOT...

    answer choices

    get a loan from the car dealer directly to keep things simple.

    look for the lowest interest rates you can find.

    select the loan that has right repayment period for you.

    compare pre-approval offers and select the one that is best for you.

  • Question 24
    30 seconds
    Report an issue
    Q.

    Going directly to a car dealer for a loan to keep things simple is a...

    answer choices

    great idea because they want you to get the car so it'll be the best offer.

    not great because they typically offer higher interest rates.

    great idea because you don't have to deal with another lender.

    not great because car dealers don't offer loans.

  • Question 25
    30 seconds
    Report an issue
    Q.

    What option will NOT be available if you are behind on loan payments?

    answer choices

    A financial institution may offer for you to pay a little now and pay the rest after your next pay day.

    You can borrow money from friends and family.

    You can ask to get out of your loan.

    Your financial institution might allow you to defer the loan but you'll have to pay the interest.

  • Question 26
    30 seconds
    Report an issue
    Q.

    What could be a good option available to you if you are behind on loan payments?

    answer choices

    A financial institution may offer for you to pay a little now and pay the rest after your next pay day.

    You can ignore your payments until the financial institution asks about them.

    You can take out a payday loan.

    Ask your financial institution to get out of the loan contract.

  • Question 27
    30 seconds
    Report an issue
    Q.

    What option will NOT be available if you are behind on loan payments?

    answer choices

    A financial institution may offer for you to pay a little now and pay the rest after your next pay day.

    You can borrow money from friends and family.

    You can ask to get out of your loan.

    Your financial institution might allow you to defer the loan but you'll have to pay the interest.

  • Question 28
    30 seconds
    Report an issue
    Q.

    Which is a positive reason for using a credit card to finance purchases?

    answer choices

    You will get charged high interest.

    Paying it off on time can help build your credit history

    You won't have to budget for your credit card expenses.

    You'll be able to spend a lot of money without paying it back

  • Question 29
    30 seconds
    Report an issue
    Q.

    Which is NOT a positive reason for using a credit card to finance purchases?

    answer choices

    Paying it off on time can help build your credit history

    You can get rewards and discounts.

    You can buy something you need now and pay for it after pay day.

    You will get charged high interest.

  • Question 30
    30 seconds
    Report an issue
    Q.

    Credit cards can help _____________ when paid off on time regularly.

    answer choices

    build credit history

    act as a form of identification

    lower your debt

    balance your checking account

Report an issue
Why show ads?
Report Ad
Join a game