This quiz works best with JavaScript enabled. Home > Economics > Finance > Credit > Credit – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Credit Quiz 2 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the numerical range for credit scores from the three major reporting agencies? A) From 300 to 850. B) From 500 to 1000. C) From 1 to 1000. D) From 1 to 100. Show Answer Correct Answer: A) From 300 to 850. 2. The best time to start saving for your retirement is A) When you become eligible for Social Security. B) When you start a family. C) When interest rates are low. D) As soon as possible. Show Answer Correct Answer: D) As soon as possible. 3. The act of taking an asset used as collateral and selling it to pay the debt A) Character. B) Capacity. C) Delinquent. D) Repossession. Show Answer Correct Answer: D) Repossession. 4. What is term for the person who will sign a loan document with you to help you obtain credit? A) Cosigner. B) Nice Person. C) Equitor. D) Capital. Show Answer Correct Answer: A) Cosigner. 5. What makes up the largest part of your credit score? A) How well you pay off your bills. B) Income. C) Length of credit history. D) Types of credit you use. Show Answer Correct Answer: A) How well you pay off your bills. 6. What is the term for money you can use now, but must pay back later? A) Collateral. B) Credit. C) Deposit. D) Down payment. Show Answer Correct Answer: B) Credit. 7. Institution that collects credit information about you and sells it to lenders for use in establishing your credit rating A) Hackers. B) FBI. C) Credit bureau. D) FICO. Show Answer Correct Answer: C) Credit bureau. 8. How can one avoid paying interest on money borrowed on a credit card? A) Pay the amount used in full during the current billing cycle. B) Make the minimum payment on the account statement. C) Pay at least have of the balance showing on the statement. D) Not making a payment at all. Show Answer Correct Answer: A) Pay the amount used in full during the current billing cycle. 9. Which loan type is more common? A) Single Payment. B) Installment. C) No payment. D) Character. Show Answer Correct Answer: B) Installment. 10. What can you usually buy or get easier with a good credit score? A) House. B) Car. C) Lower interest rate on a loan. D) All of the above. Show Answer Correct Answer: D) All of the above. 11. Choose the correct meaning of organised sector: A) It provides low salaries. B) Jobs are not regular. C) It is outside the control of the government. D) It covers those enterprises where the terms of employment are regular. Show Answer Correct Answer: D) It covers those enterprises where the terms of employment are regular. 12. Having a low credit score can make it more difficult to: A) Obtain a car loan. B) Open a new credit card. C) Secure an apartment lease. D) All of the above. Show Answer Correct Answer: D) All of the above. 13. What is the correlation between collateral and credit score? A) The lower a person's credit score the less collateral he/she has to put up. B) The higher a person's credit score, the less collateral a person has to put up. C) There is no correlation between collateral and credit score. D) None of above. Show Answer Correct Answer: B) The higher a person's credit score, the less collateral a person has to put up. 14. Amount owed on a credit card or loan A) Interest. B) Balance. C) Credit. D) Capacity. Show Answer Correct Answer: B) Balance. 15. Benefits of credit cards include: A) Safe and convenient, bonuses are offered. B) Allows you to build a positive credit report. C) Needed for reservations and online shopping. D) All of these. Show Answer Correct Answer: D) All of these. 16. Bank of America issues you a credit card with a maximum balance of $ 1, 000. This is an example of: A) Credit Limit. B) Minimum Payment. C) Co-Signer. D) Finance Charge. Show Answer Correct Answer: A) Credit Limit. 17. Banks provide a higher rater of interest on which one of the following accounts? A) Fixed deposits for long periods. B) Fixed deposits for very short periods. C) Current account. D) Saving account. Show Answer Correct Answer: A) Fixed deposits for long periods. 18. Which authority regulate and overlook the credit sysetm and economic activites in India A) RBI. B) NSSO. C) Finance Minister. D) CBI. Show Answer Correct Answer: A) RBI. 19. Which is NOT a financial consequence of debt? A) Debt can cost you your friends and family. B) Debt can lead to overspending. C) Debt obligates your future income. D) Debt can increase your insurance premium. Show Answer Correct Answer: A) Debt can cost you your friends and family. 20. Offers loans, debit cards, and financial services A) Bank. B) Credit Union. C) Both. D) Neither. Show Answer Correct Answer: C) Both. 21. A number based on your borrowing history. The higher it is the easier it is for you to receive credit. A) Credit Option. B) Credit Score. C) Credit Worthiness. D) None of above. Show Answer Correct Answer: B) Credit Score. 22. Money can be best described as A) Payment through cheque. B) Medium of transaction. C) Deposit in Banks. D) Medium of exchange. Show Answer Correct Answer: D) Medium of exchange. 23. The protections put in place by law to help people obtain and maintain credit A) Credit Report. B) Credit Rights. C) Credit Responsibilities. D) Credit Score. Show Answer Correct Answer: B) Credit Rights. 24. What percentage of deposits are kept as cash by the commercial banks in India? A) 20%. B) 15%. C) 10%. D) 25%. Show Answer Correct Answer: B) 15%. 25. Which of the following can impact your credit score? A) Paying cash for a used car. B) Living with our parents to cut down on expenses. C) Making a late car loan payment. D) Getting bonus pay from your employer. Show Answer Correct Answer: C) Making a late car loan payment. 26. A creditor determines your creditworthiness based on: A) Character, collateral, and capacity. B) Address. C) Gender. D) Level of education. Show Answer Correct Answer: A) Character, collateral, and capacity. 27. A Co-signer is responsible for: A) Half. B) What ever the primary person does not pay. C) Non of the loan. D) The entire loan. Show Answer Correct Answer: D) The entire loan. 28. Your credit score, as used in applications for loans and credit, relates to A) Character, capacity, and capital. B) Truth-in-Lending regulations. C) Voluntary and involuntary bankruptcy. D) Repossession. Show Answer Correct Answer: A) Character, capacity, and capital. 29. The amount of the loan per year as a percentage of the amount borrowed. A) Interest. B) Fees. C) Annual Percentage Rate. D) Installment Loan. Show Answer Correct Answer: C) Annual Percentage Rate. 30. An arrangement to receive cash, goods, or services now and pay for them in the future. A) Credit. B) Credit report. C) Creditor. D) Credit history. Show Answer Correct Answer: A) Credit. ← PreviousNext →Related QuizzesFinance QuizzesEconomics QuizzesCredit Quiz 1Credit Quiz 3Credit Quiz 4Credit Quiz 5Credit Quiz 6Credit Quiz 7Credit Quiz 8Credit Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books