This quiz works best with JavaScript enabled. Home > Economics > Finance > Credit > Credit – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Credit Quiz 10 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Money you pay up front toward the purchase to reduce the loan amount A) Down payment. B) Principal. C) Interest. D) Up front payment. Show Answer Correct Answer: A) Down payment. 2. A typical Self Help Group usually has A) 100-200 members. B) Less than 10 members. C) 15-20 members. D) 50-100 members. Show Answer Correct Answer: C) 15-20 members. 3. What does credit measure? A) How likely someone is to pay back a loan. B) How well someone has made payments in the past. C) How trustworthy someone is with money. D) All of the above. Show Answer Correct Answer: D) All of the above. 4. A legal process in which PEOPLE who cannot pay the debts reorganize their debt. A) Bankruptcy-Chapter 7. B) Bankruptcy-Chapter 11. C) Bankruptcy-Chapter 15. D) Bankruptcy-Chapter 13. Show Answer Correct Answer: D) Bankruptcy-Chapter 13. 5. A credit score helps lenders decide if you're a A) A good person. B) An adult. C) Good credit risk. D) Person with a good employment history. Show Answer Correct Answer: C) Good credit risk. 6. The act of transferring debt from one credit card account to another. A) Penalty APR. B) Variable-Rate APR. C) Balance Transfers. D) Annual Transfers. Show Answer Correct Answer: C) Balance Transfers. 7. How likely a lender determines you are to default on or repay your debts is called ..... A) Your financial future. B) Your credit-ability. C) Your creditworthiness. D) None of above. Show Answer Correct Answer: C) Your creditworthiness. 8. What were the earliest form of objects used as money in India A) Grains and cattle. B) Coins. C) Jewels. D) Land. Show Answer Correct Answer: A) Grains and cattle. 9. Which scores are nearly perfect credit? A) 620 and below. B) 801 and above. C) 621-690. D) 721-750. Show Answer Correct Answer: B) 801 and above. 10. Examples of penalty fees include: A) Over-the-limit fee. B) Late payment fee. C) Returned payment fee. D) All of these. Show Answer Correct Answer: D) All of these. 11. A person who is a good credit risk? A) Capactiy. B) Character. C) Credit Report. D) Creditworthy. Show Answer Correct Answer: D) Creditworthy. 12. Kasey is looking at possible options to pay for higher education. What type of credit is best suited for financing this program? A) Payday loan. B) Conventional loan. C) Student loan. D) None of above. Show Answer Correct Answer: C) Student loan. 13. Credit cards are examples of what type of credit A) Short term credit. B) Revolving credit. C) Installment credit. D) Limited credit. Show Answer Correct Answer: B) Revolving credit. 14. Which of the following actions would improve your credit score? A) Closing out old credit cards. B) Using a large portion of your credit limit. C) Paying off your credit card bill. D) Opening a new savings account. Show Answer Correct Answer: C) Paying off your credit card bill. 15. Fee charged when a credit card holder does not make the minimum monthly payment by the due date. A) Penalty Fee. B) Returned Payment Fee. C) Schumer Box Fee. D) Late Payment Fee. Show Answer Correct Answer: D) Late Payment Fee. 16. The ..... is the time during which you are allowed to pay your credit card vill without having to pay interest. A) Finance charge. B) Acceleration clause. C) Grace period. D) Loan forgiveness time. Show Answer Correct Answer: C) Grace period. 17. How much did the Bradley's spend on takeout(food) each day? A) $ 25. B) $ 75. C) $ 100. D) $ 50. Show Answer Correct Answer: C) $ 100. 18. An agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment refers to A) Collateral. B) Credit. C) Deposit. D) Debt. Show Answer Correct Answer: B) Credit. 19. Which of the following is not one of the "Three C's" of credit? A) Capacity. B) Consignment. C) Collateral. D) Character. Show Answer Correct Answer: B) Consignment. 20. In a SHG most of the decisions regarding loan activities are taken by A) Cooperative. B) Banks. C) Non-government organisation. D) Members. Show Answer Correct Answer: D) Members. 21. A yearly fee charged by some credit cards for use of the card. A) Interest. B) Late payment fee. C) Annual fee. D) None of above. Show Answer Correct Answer: C) Annual fee. 22. What is the best interest rate to get on a credit card? A) 1%. B) 5.6%. C) 30%. D) 0%. Show Answer Correct Answer: D) 0%. 23. The amount based on the percentage of the outstanding balance, or a minimum fixed amount A) Minimum monthly charge. B) Minimum monthly payment. C) Minimum monthly fee. D) Minimum monthly statement. Show Answer Correct Answer: B) Minimum monthly payment. 24. What can you buy or get with a good credit score? A) House. B) Car. C) Loan. D) All of the above. Show Answer Correct Answer: D) All of the above. 25. Which of the following examples does not fall under unorganised sector? A) A farmer irrigating his field. B) A daily wage labourer working for a contractor. C) A doctor in a hospital treating a patient. D) A handloom weaver working on a loom in her house. Show Answer Correct Answer: C) A doctor in a hospital treating a patient. 26. A FICO credit score falls between what range? A) 350-900. B) 275-1200. C) 375-850. D) 300-850. Show Answer Correct Answer: D) 300-850. 27. John has always paid his bills on time. This will affect which of the 3 C's? A) Character. B) Capital. C) Capacity. D) Credibility. Show Answer Correct Answer: A) Character. 28. Which among the following options will be the cheapest source of credit in rural areas? A) Money-lender. B) Bank. C) Finance Company. D) Cooperative Society. Show Answer Correct Answer: D) Cooperative Society. 29. Money-lenders usually demand a 'security' from the borrower. What is the formal word used for the 'security', such as land, vehicle, livestock, building, etc.? A) Deposit. B) Guarantee. C) Credit. D) Collateral. Show Answer Correct Answer: D) Collateral. 30. Which one of the following is the main source of credit for rich urban households in India? A) Money lenders. B) Formal sector. C) Traders. D) Informal sector. Show Answer Correct Answer: B) Formal sector. ← PreviousNext →Related QuizzesFinance QuizzesEconomics QuizzesCredit Quiz 1Credit Quiz 2Credit Quiz 3Credit Quiz 4Credit Quiz 5Credit Quiz 6Credit Quiz 7Credit Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books