This quiz works best with JavaScript enabled. Home > Economics > Finance > Credit > Credit – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Credit Quiz 12 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When financing a car, which credit score will warrant the best rate? A) 850. B) 300. C) 950. D) 250. Show Answer Correct Answer: A) 850. 2. Someone who borrows money or uses credit A) Creditor. B) Debtor. C) Interest. D) None of above. Show Answer Correct Answer: B) Debtor. 3. Which of the following is NOT a type of secured loan: A) Auto loan. B) Boat loan. C) Credit card. D) Housing loan. Show Answer Correct Answer: C) Credit card. 4. To build a good credit history, you should A) Open as much credit as possible quickly. B) Use the maximum credit allowed on all your credit cards. C) Pay on time and as much of your balance as possible. D) All of these. Show Answer Correct Answer: C) Pay on time and as much of your balance as possible. 5. A type of mortgage that has small payments that "grow" over time then requires the full payment of the mortgage. A) Fixed Rate Mortgage. B) Adjustable Rate Mortgage-ARM. C) Balloon. D) Subprime. Show Answer Correct Answer: C) Balloon. 6. This is the form you must fill out before going to college in order to get aid from the government to pay for college A) FASFA. B) FAFSA. C) AFSAF. D) FASAF. Show Answer Correct Answer: B) FAFSA. 7. An unsecured loan is one that A) Has something of value the lender can take in case of default. B) Has nothing of value the lender can take in case of default. C) Is specifically for buying a house. D) None of above. Show Answer Correct Answer: B) Has nothing of value the lender can take in case of default. 8. What will be collateral for a car loan? A) Stamp and Vehicle registration papers. B) Registration papers. C) Installments. D) Interest payment. Show Answer Correct Answer: A) Stamp and Vehicle registration papers. 9. The length of time before you get charged interest. A) Free period. B) Installment. C) Grace period. D) Waiver. Show Answer Correct Answer: C) Grace period. 10. What financial habits determine your credit score? A) Payment History & Amount you owe. B) Length of credit history & Amount of new credit applied for recently. C) Types of credit open. D) All of these are correct. Show Answer Correct Answer: D) All of these are correct. 11. All of the following terms but one is associated with secure loans A) Foreclosure. B) Revolving. C) Collateral. D) Repossession. Show Answer Correct Answer: B) Revolving. 12. Which one of the following is an asset that the borrower owns and uses as a guarantee until the loan is repaid to the lender? A) Money. B) Property. C) Deposits. D) Collateral. Show Answer Correct Answer: D) Collateral. 13. The smallest required payment that a credit card holder can pay on a monthly bill and still remain in good standing with the lender. A) Balance. B) Credit. C) Minimum Payment. D) Principal. Show Answer Correct Answer: C) Minimum Payment. 14. A yearly fee for having an open account A) Anniversary Fee. B) Yearly Fee. C) Year End Fee. D) Annual Fee. Show Answer Correct Answer: D) Annual Fee. 15. Payment history accounts for around ..... of your credit score. A) 3/4. B) 35%. C) 1/2. D) 90%. Show Answer Correct Answer: B) 35%. 16. A loan obtained when you purchase a home and use the home as collateral is a(n) A) Unsecured debt. B) Assessment. C) Foreclosure. D) Mortgage. Show Answer Correct Answer: D) Mortgage. 17. Reserve Bank of India was nationalised on A) 1st January 1960. B) 1st January 1947. C) 1st January 1948. D) 1st January 1949. Show Answer Correct Answer: D) 1st January 1949. 18. Which one is NOT a benefit of having a credit card? A) Raises standard of living. B) Convenient. C) Interest. D) Increase financial options. Show Answer Correct Answer: C) Interest. 19. Financial ability to repay a loan with present income? A) Credit Freeze. B) Capacity. C) Character. D) Conditions. Show Answer Correct Answer: B) Capacity. 20. An example of closed-ended credit is a(n) ..... A) Installment loan. B) Credit card. C) Equity Credit line. D) None of above. Show Answer Correct Answer: A) Installment loan. 21. ..... is the entire amount of money you owe to lenders A) Bankruptcy. B) Debt. C) Duty. D) Obligation. Show Answer Correct Answer: B) Debt. 22. All are advantages of credit except: A) Credit allows you to pay for major purchases over time. B) Credit cards are more convenient than carrying cash. C) Credit cards create debt. D) Credit can provide emergency funds. Show Answer Correct Answer: C) Credit cards create debt. 23. The FICO score measures all of the following except: A) Debt History. B) New Debt. C) Types of Debt. D) Savings Account Balanace. Show Answer Correct Answer: D) Savings Account Balanace. 24. Who has power to sign One rupees paper note in India? A) President. B) Finance Secretary. C) Finance Minister. D) Governer of RBI. Show Answer Correct Answer: B) Finance Secretary. 25. Between what number wold you have an excellent credit score? A) 700-759. B) 851-941. C) 760-850. D) 620-659. Show Answer Correct Answer: C) 760-850. 26. Passed in 1968, requiring all banks to calculate credit costs in the same way. A) Fair Credit Reporting Act. B) Truth in Lending Act. C) Equal Credit Opportunity Act. D) Fair Credit Billing Act. Show Answer Correct Answer: B) Truth in Lending Act. 27. Which is not a good tip to build credit A) Use for necessities like gas or groceries, then pay off before the next billing cycle. B) Cosign on a credit card with your guardians. C) Buy a new outfit and only pay the minimum balance each month. D) Only spend what you can afford. Show Answer Correct Answer: C) Buy a new outfit and only pay the minimum balance each month. 28. Money you earn each month is called ..... A) Spending plan. B) Gone. C) Income. D) Expense. Show Answer Correct Answer: C) Income. 29. A financial institution which accepts deposits from public and provide loans to them. A) Share Market. B) Insurance Company. C) Banks. D) All of these. Show Answer Correct Answer: C) Banks. 30. Which of the 3 C's of credit is your ability to repay the loan? A) Capital. B) Capacity. C) Character. D) Collateral. Show Answer Correct Answer: B) Capacity. ← 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