This quiz works best with JavaScript enabled. Home > Economics > Finance > Credit > Credit – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Credit Quiz 11 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the main source of income for banks? A) Interest on loans. B) Interest on deposits. C) Difference between the interest charged on borrowers and depositors. D) None of these. Show Answer Correct Answer: C) Difference between the interest charged on borrowers and depositors. 2. One of the advantages of credit is A) The temptation to buy more than you want. B) An increased income. C) Repossession of items if you don't pay your bill. D) The convenience of use. Show Answer Correct Answer: D) The convenience of use. 3. A type of mortgage that the least amount of risk. A) Fixed Rate Mortgage. B) Adjustable Rate Mortgage. C) Balloon Mortage. D) Subprime Loan. Show Answer Correct Answer: A) Fixed Rate Mortgage. 4. Which is an advantage of having credit? A) Not having to carry around a lot of money. B) Identity theft. C) Bad credit. D) Paying interest. Show Answer Correct Answer: A) Not having to carry around a lot of money. 5. What do you have to have to declare bankruptcy? A) Proof. B) Tears. C) Defendant. D) State Judge. Show Answer Correct Answer: A) Proof. 6. No individual in India can legally refuse a payment made ..... A) Deposits. B) Money. C) Rupees. D) Cheque. Show Answer Correct Answer: C) Rupees. 7. Which one is the following is the important characteristic of modern form of currency? A) It is made from thing of everyday use. B) It is authorized by the Government of the country. C) It is authorized by commercial banks. D) It is made from precious metal. Show Answer Correct Answer: B) It is authorized by the Government of the country. 8. Which of the following is considered to be open-end credit? A) Mortgage. B) Car loan. C) Department store charge cards. D) Installment loan. Show Answer Correct Answer: C) Department store charge cards. 9. Another name for open ended credit is ..... credit A) Spinning. B) Endless. C) Revolving. D) Never ending. Show Answer Correct Answer: C) Revolving. 10. A credit score is intended to measure: A) Your income level. B) The risk of your not repaying debt. C) Your financial success. D) The amount of money you have in the bank. Show Answer Correct Answer: B) The risk of your not repaying debt. 11. Which of the following statements about credit scores is TRUE? A) Credit scores reflect how likely individuals are to repay their debts. B) Credit Scores range from the low 300's to the mid 800's. C) Each person has three credit scores. D) All of the above. Show Answer Correct Answer: D) All of the above. 12. Which is not a Credit Bureau. A) Visa. B) TransUnion. C) Equifax. D) Experian. Show Answer Correct Answer: A) Visa. 13. In which of the following situations is having a good credit score important? A) Buying a car. B) Applying for a loan at a bank. C) Renting an apartment. D) All of the above. Show Answer Correct Answer: D) All of the above. 14. What would a 622 credit score be considered? A) Excellent. B) Bad. C) Fair. D) Good. Show Answer Correct Answer: C) Fair. 15. What is the single best thing you can do to help build a good credit score and keept it once you have it? A) Pay my bills on time. B) Keep balances on all accounts low. C) Take out only the credit I need when I need it. D) Pay cash. Show Answer Correct Answer: A) Pay my bills on time. 16. A responsible attitude toward honoring one's obligation? A) Creditworthy. B) Credit Bureau. C) Character. D) Capacity. Show Answer Correct Answer: C) Character. 17. Which one is an example of Informal Source of Credit A) Banks. B) Cooperative Societies. C) Money Lender. D) All of these. Show Answer Correct Answer: C) Money Lender. 18. A person who lends money or provides credit A) Creditor. B) Debtor. C) Interest. D) None of above. Show Answer Correct Answer: A) Creditor. 19. Which is a Disadvantage of having credit? A) Having it available for Emergencies. B) Ability to purchase expensive items sooner. C) Convenience. D) Additional fees. Show Answer Correct Answer: D) Additional fees. 20. A yearly fee that may be charged for having a credit card is known as: A) APR. B) Introductory Fee. C) Credit Limit. D) Annual Fee. Show Answer Correct Answer: D) Annual Fee. 21. Which among the following banks issues currency notes on behalf of the Central Government in India? A) State Bank of India. B) RBI. C) Central Bank of India. D) Bank of India. Show Answer Correct Answer: B) RBI. 22. What must you have in order to get a home equity loan? A) House. B) College Education. C) A dog. D) Car. Show Answer Correct Answer: A) House. 23. What is A financial Institution A) An institution that is legitimately made out of pure gold their head quarters is the most expensive building ever built. B) A business that provides money related services. C) Why don't you know this. D) If you don't know this ask Mrs. Permada. Show Answer Correct Answer: B) A business that provides money related services. 24. If you go over your credit limit or make your payment late, you will likely be charged a A) Loser fee. B) Late payment fee. C) Overdue fee. D) Withdrawal fee. Show Answer Correct Answer: B) Late payment fee. 25. The complete record of your borrowing and repayment performance. A) Credit History. B) Credit Report. C) Credit Freeze. D) Credit Bureau. Show Answer Correct Answer: A) Credit History. 26. How do you ruin your credit? A) Get a gas/Apartment card. B) Have someone Co-Sign your loan. C) Not pay your bills. D) Cats. Show Answer Correct Answer: C) Not pay your bills. 27. You can access your credit report ..... A) Only once a year. B) For free whenever you want. C) For free once a year. D) Only if your credit score is low. Show Answer Correct Answer: C) For free once a year. 28. How can you avoid paying interest fees on your credit card? A) Only use it for groceries. B) You cannot avoid interest fees. C) Pay off the full balance, on time, each month. D) Only use Discover. Show Answer Correct Answer: C) Pay off the full balance, on time, each month. 29. What are 2 of the top 5 factors that assist in calculating your credit score? A) Payment History and Amount of current debt. B) Length of credit history and types of credit. C) Payment History and Job History. D) Payment History and Credit inquiries. Show Answer Correct Answer: A) Payment History and Amount of current debt. 30. Safe place to store your money A) Bank. B) Credit Union. C) Both. D) Neither. Show Answer Correct Answer: C) Both. ← 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