This quiz works best with JavaScript enabled. Home > Economics > Finance > Credit > Credit – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Credit Quiz 13 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An example of installment credit is ..... A) Credit card. B) Home/car loan. C) Debt card. D) None of above. Show Answer Correct Answer: B) Home/car loan. 2. Who is the founder of Grameen Bank of Bangladesh? A) Mohammad Zakir. B) Mohammad Yunus. C) Mohammad Tuglaq. D) Mohammad Kasim. Show Answer Correct Answer: B) Mohammad Yunus. 3. A loan that is backed by something of value to insure payment is a A) Subprime loan. B) Credit card loan. C) Unsecured loan. D) Secured loan. Show Answer Correct Answer: D) Secured loan. 4. What is the most important credit score Key Factor? A) How many credit cards you have. B) Your oldest credit card. C) How you Pay your Bills. D) How much money you have. Show Answer Correct Answer: C) How you Pay your Bills. 5. ..... is the extra money paid to a lender for the use of the lender's money. A) Service. B) Good. C) Interest. D) Loan. Show Answer Correct Answer: C) Interest. 6. What is the classic FICO credit score scale? A) 100-500. B) 300-1000. C) 500-900. D) 300-850. Show Answer Correct Answer: D) 300-850. 7. Which group of scores might not get a loan or credit card? A) 801-850. B) 751-800. C) 721-750. D) 620 and below. Show Answer Correct Answer: D) 620 and below. 8. Person with strong established credit who signs credit app & contract along with borrower A) Cosigner. B) Principal. C) Collateral. D) Grace period. Show Answer Correct Answer: A) Cosigner. 9. The amount of money borrowed A) Principle. B) Creditor. C) Principal. D) Credit. Show Answer Correct Answer: C) Principal. 10. Interest payment will be higher on a home loan on account of A) High tenure of loan. B) Lack of proper documentation. C) High risk of borrower profile. D) All of these. Show Answer Correct Answer: D) All of these. 11. The length of time between your statements, often one month in length. A) Billing cycle. B) Credit limit. C) Grace period. D) None of above. Show Answer Correct Answer: A) Billing cycle. 12. A measure of financial ability to repay a loan A) Capital. B) Collateral. C) Character. D) Capacity. Show Answer Correct Answer: D) Capacity. 13. What describes overdrafts the best? A) When you go into the negative amount (deficit) in your bank account. B) When you go into the negative amount (surplus) in your bank account. C) When you spend too much money at once. D) None of above. Show Answer Correct Answer: A) When you go into the negative amount (deficit) in your bank account. 14. An asset that the borrowers own, and use this as a guarantee to the lender, until the loan is repaid. A) Security. B) Collateral. C) Property. D) All of these. Show Answer Correct Answer: B) Collateral. 15. What is the debt snowball method? A) You pay largest to smallest. B) You pay smallest to largest. C) You pay average debt to larger debt. D) Pay average debt to smaller debt. Show Answer Correct Answer: B) You pay smallest to largest. 16. In order to have good credit you need to ..... A) Own a lot of credit cards. B) Max out your credit cards. C) Let others use your credit cards. D) Keep your credit card balances low and pay them on time. Show Answer Correct Answer: D) Keep your credit card balances low and pay them on time. 17. External conditions that affect your ability to repay a debt? A) Collateral. B) Character. C) Conditions. D) Capital. Show Answer Correct Answer: C) Conditions. 18. Reserve bank of India grants loans to A) General public. B) Private Companies. C) Commercial Banks. D) All of these. Show Answer Correct Answer: C) Commercial Banks. 19. Always pay on time so you don't get a ..... ..... A) Late fee. B) Late night. C) Late term. D) None of above. Show Answer Correct Answer: A) Late fee. 20. A simple definition of credit could be stated as ..... A) Buy later, pay later. B) Buy now, pay later. C) Buy later, pay now. D) Buy now, pay now. Show Answer Correct Answer: B) Buy now, pay later. ← PreviousRelated 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