This quiz works best with JavaScript enabled. Home > Economics > Finance > Credit > Credit – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Credit Quiz 3 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following does not come under modern forms of money? A) Currency. B) Cheque Payments. C) Demand deposits. D) Loan Payments. Show Answer Correct Answer: D) Loan Payments. 2. When may a person view his/her credit report for free? A) At any time and an unlimited amount of times. B) Once a year, from each of the three main credit reporting agencies. C) A person may not review his/her credit report. D) If a person has sufficient financial resources. Show Answer Correct Answer: B) Once a year, from each of the three main credit reporting agencies. 3. A typical SHG has ..... members. A) 25 to 30. B) 15 to 20. C) 20 to 25. D) 30 to 35. Show Answer Correct Answer: B) 15 to 20. 4. Which of the following is NOT a positive spending practice? A) Use cash only. B) Use coupons. C) Only shop at stores you like. D) Shop sales. Show Answer Correct Answer: C) Only shop at stores you like. 5. Which of the following is considered an advantage to using a debit card to make purchases? A) Debit cards are convenient and easy to carry around. B) Purchases can be made quickly and easily. C) You can use many ATMs to get cash. D) All of the above. Show Answer Correct Answer: D) All of the above. 6. Which is NOT a way to establish credit? A) Creating an account with a bank. B) Obtaining a credit card. C) Getting married, having a few kids, buying some stuff, retiring to Florida, and dying. D) Having a parent co-sign a card. Show Answer Correct Answer: C) Getting married, having a few kids, buying some stuff, retiring to Florida, and dying. 7. How can you improve your credit score? A) Make payments on time. B) Reduce overall debt. C) Limit your applications. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. The ability to borrow money in return for a promise of future payment. A) Subprime loan. B) Credit. C) Bankruptcy. D) Finance charge. Show Answer Correct Answer: B) Credit. 9. How can someone between ages 18-20 establish credit? A) Having a parent pay. B) Debit card. C) Paying with cash. D) Checking/savings account. Show Answer Correct Answer: D) Checking/savings account. 10. Consumer reporting agencies or credit reporting agencies are also called A) Credit cards. B) Credit bureaus. C) Credit checks. D) Credit cookies. Show Answer Correct Answer: B) Credit bureaus. 11. Under Barter System the exchange of goods require ..... A) A good transport system. B) Double coincidence of wants. C) Communication. D) Advertising. Show Answer Correct Answer: B) Double coincidence of wants. 12. The 3 credit bureaus that determine your FICO score are: A) Equifax, Transunion, and Experian. B) Transamerican, Equality, Experience. C) Transparcel, Equin, Faxqui. D) Crederian, Equiunion, Experfax. Show Answer Correct Answer: A) Equifax, Transunion, and Experian. 13. When your billing statement shows no outstanding balance and no new charges have been incurred. A) Blank balance. B) Introductory balance. C) Zero balance. D) None of above. Show Answer Correct Answer: C) Zero balance. 14. Two major credit scoring systems are A) FICO and Advantage Score. B) FICO and Vantage Score. C) FIDO and Vantage Score. D) FICO and Darth Vantage. Show Answer Correct Answer: B) FICO and Vantage Score. 15. Amount of time before interest starts accumulating on charged purchases is the ..... A) Grace period. B) No interest period. C) Free period. D) Forgiveness period. Show Answer Correct Answer: A) Grace period. 16. A Hard Credit Inquiry is ..... A) Occurs where you check your own credit or a lender checks your credit to pre-approve you. B) Occurs when a lender checks your credit in order to make a lending decision. C) Occurs when a lender pulls your credit using a hammer. D) None of above. Show Answer Correct Answer: B) Occurs when a lender checks your credit in order to make a lending decision. 17. What does a credit card do? A) Income is equal to the expenses and savings. They both equal to zero. B) The plan for spending and saving money. C) A paper asking the bank to pay the specific amount. D) They money is borrowed no and it's paid back later. Show Answer Correct Answer: D) They money is borrowed no and it's paid back later. 18. What is a Disadvantage of having credit? A) Identity theft. B) Getting approved for credit. C) Paying later. D) Convenience. Show Answer Correct Answer: A) Identity theft. 19. Which of the following is an advantage of using a credit card? A) Interest is charged for the use of a credit card. B) Consumers can purchase things now, and pay for them later in the event of an emergency. C) You could be a victim of identity theft. D) None of above. Show Answer Correct Answer: B) Consumers can purchase things now, and pay for them later in the event of an emergency. 20. A Soft Credit Inquiry is ..... A) Occurs where you check your own credit or a lender checks your credit to pre-approve you. B) Occurs when a lender checks your credit in order to make a lending decision. C) Occurs when a lender pulls your credit using silk gloves. D) None of above. Show Answer Correct Answer: A) Occurs where you check your own credit or a lender checks your credit to pre-approve you. 21. A loan that is repaid in regular payments over a period of time is called a(n): A) Installment loan. B) Pawnshop loan. C) Payday advance loan. D) Line of credit. Show Answer Correct Answer: A) Installment loan. 22. The number of open credit accounts, the balances on credit accounts, the number of on-time payments, and the number of credit inquiries on an individual A) Credit history. B) Credit report. C) Credit card. D) None of above. Show Answer Correct Answer: A) Credit history. 23. A ..... is money lent by a financial institution with the expectation that it will be paid back with interest. A) Service. B) Loan. C) Economy. D) Consumer. Show Answer Correct Answer: B) Loan. 24. FICO stands for: A) Fair Isaac Company. B) Fair Investment Corporation. C) Fair Isaac Newton. D) Fair Isaac Corporation. Show Answer Correct Answer: D) Fair Isaac Corporation. 25. What does FICO stand for? A) Future Interest Corporation. B) Foreign Investment Corporation. C) First Intern Corporation. D) Fair Isaac Corporation. Show Answer Correct Answer: D) Fair Isaac Corporation. 26. Open to anyone over 18 A) Bank. B) Credit Union. C) Both. D) Neither. Show Answer Correct Answer: A) Bank. 27. Which is an exceptional credit score? A) 713. B) 813. C) 672. D) 555. Show Answer Correct Answer: B) 813. 28. The cosigner of a loan agrees to A) Pay for faulty merchandise. B) Make sure the loan is legal. C) Pay only the interest on the loan. D) Pay the debt if the debtor does not pay. Show Answer Correct Answer: D) Pay the debt if the debtor does not pay. 29. One disadvantage of credit is A) The use of goods while paying for them. B) Impulse buying by credit users. C) The forced savings feature of credit. D) Building a credit reputation. Show Answer Correct Answer: B) Impulse buying by credit users. 30. When a person declares bankruptcy that fact will appear on the person?s credit report A) For a 3 year period. B) For a 10 year period. C) Until the person repays all debts owed. D) Until the person is able to receive a new credit card. Show Answer Correct Answer: B) For a 10 year period. ← PreviousNext →Related QuizzesFinance QuizzesEconomics QuizzesCredit Quiz 1Credit Quiz 2Credit Quiz 4Credit Quiz 5Credit Quiz 6Credit Quiz 7Credit Quiz 8Credit Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books