This quiz works best with JavaScript enabled. Home > Economics > Finance > Credit > Credit – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Credit Quiz 5 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The most responsible way to use credit is to be sure to ..... A) Shop for the best deals. B) Get as many credit cards as you can. C) Only get credit cards that give you rewards. D) Pay the full balance charged each month. Show Answer Correct Answer: D) Pay the full balance charged each month. 2. Terms of credit does not include A) Mode of repayment. B) Cheque. C) Collateral. D) Interest rate. Show Answer Correct Answer: B) Cheque. 3. Which of the following actions has NO impact on your credit score? A) You inquire about a credit card charge. B) You opened several new credit cards last week. C) You send in your credit card payment a couple days late. D) You use a large percentage of your credit limit. Show Answer Correct Answer: A) You inquire about a credit card charge. 4. An example of revolving credit is ..... A) Credit cards. B) Home loan. C) Home. D) Car loan. Show Answer Correct Answer: A) Credit cards. 5. Which one of the following is not a modern form of money? A) Demand deposits. B) Paper currency. C) Coins. D) Precious metals. Show Answer Correct Answer: D) Precious metals. 6. Why is credit so dangerous? A) Convenient. B) Overspending. C) Standard of living. D) Horses. Show Answer Correct Answer: B) Overspending. 7. What is the amount of money required to be stay in an account? A) Minimum Balance. B) Maximum Balance. C) Maximum Deposit. D) Minimum Deposit. Show Answer Correct Answer: A) Minimum Balance. 8. More money purchasing less goods and services means A) Deflation. B) Inflation. C) Stagflation. D) None of these. Show Answer Correct Answer: B) Inflation. 9. Which of the following would IMPROVE your credit score. A) Paying off your credit card bill. B) Using a large portion of your credit limit. C) Closing out old credit cards. D) Opening a new savings account. Show Answer Correct Answer: A) Paying off your credit card bill. 10. An agreement in which a buyer receives goods or services at the present time in exchange for a promise to pay for them at a later time. A) Credit. B) Interest. C) Debt. D) Interest Rate. Show Answer Correct Answer: A) Credit. 11. What is an annual fee? A) The act of transferring money. B) A yearly fee charged by a card issuer for being a card holder. C) The days between the last statement and the current statement. D) A fee charged to a cardholder's account once a payment is late. Show Answer Correct Answer: B) A yearly fee charged by a card issuer for being a card holder. 12. What is the best way to buy something big A) Use a credit card. B) Get a loan. C) Save up and pay in cash. D) Ask people for money. Show Answer Correct Answer: C) Save up and pay in cash. 13. Another name for your FICO score is your ..... ..... A) Credit score. B) Credit base. C) Winning score. D) Credit line. Show Answer Correct Answer: A) Credit score. 14. Which action can hurt your credit score? I. Paying your phone bill late. II. Taking the bus to work.III. Maxing out several credit cards. IV. Using the internet to pay your bills A) I. B) I and II. C) I and III. D) III and IV. Show Answer Correct Answer: C) I and III. 15. A record of monthly payment status on a person's credit report, since the beginning of their credit history is called ..... A) Credit history. B) Payment history. C) US History. D) None of above. Show Answer Correct Answer: B) Payment history. 16. An individual is insolvent when they cannot A) Charge a purchase. B) Obtain a credit card. C) Purchase an item because the money was left home. D) Pay their debts. Show Answer Correct Answer: D) Pay their debts. 17. Which of the following is NOT included in an individual's credit report. A) Current and past addresses. B) Account balances. C) Bankruptcies and Foreclosures. D) Medical Information. Show Answer Correct Answer: D) Medical Information. 18. How many kids do the Bradley's have? A) 2. B) 1. C) 0. D) 3. Show Answer Correct Answer: A) 2. 19. Which of the following actions can NEGATIVELY impact your credit score? A) You disputed an item on your credit report. B) You forgot to pay the cable bill. C) You pay all your bills in cash. D) You use a small amount of your available credit. Show Answer Correct Answer: B) You forgot to pay the cable bill. 20. What is #2 for steps to get out of debt? A) Spend all the money you have. B) Quit borrowing more money. C) You must save your money. D) Sell something. Show Answer Correct Answer: C) You must save your money. 21. Borrowing a set amount with equal monthly payments A) Credit Card. B) Installment Credit. C) Revolving Credit. D) Interest Rate. Show Answer Correct Answer: B) Installment Credit. 22. When a person wants to sell exactly what the other person wants to buy. This situation is known as A) Barter System. B) Double coincidence of wants. C) Trading. D) None of these. Show Answer Correct Answer: B) Double coincidence of wants. 23. A credit score of 800 is considered ..... A) Fair. B) Excellent. C) Poor. D) Good. Show Answer Correct Answer: B) Excellent. 24. ..... is the amount of money you pay to use someone else's money. A) Credit. B) Principal. C) Term. D) Interest. Show Answer Correct Answer: D) Interest. 25. How often can you get your free credit reports (from each bureau)? A) Once per year. B) Twice per year. C) Anytime. D) Three times per year. Show Answer Correct Answer: A) Once per year. 26. You should only use credit when ..... A) You want to go on vacation. B) You want to go to a concert. C) You need to not when you want to. D) All of the above are correct. Show Answer Correct Answer: C) You need to not when you want to. 27. A sum paid or charged for the use of money or for borrowing money A) Interest. B) Debt. C) Balance. D) Principal. Show Answer Correct Answer: A) Interest. 28. Credit is based on the concept of ..... A) Pay first. B) You don't have to pay, it's free. C) Buy now, pay later. D) None of above. Show Answer Correct Answer: C) Buy now, pay later. 29. A contracted agreement to pay a debt if the borrower does not pay it A) Credit Limit. B) Cosign a loan. C) Truth In Lending Act. D) Finance charge. Show Answer Correct Answer: B) Cosign a loan. 30. Owned by their customers A) Bank. B) Credit Union. C) Both. D) Neither. Show Answer Correct Answer: B) Credit Union. ← PreviousNext →Related QuizzesFinance QuizzesEconomics QuizzesCredit Quiz 1Credit Quiz 2Credit Quiz 3Credit Quiz 4Credit Quiz 6Credit Quiz 7Credit Quiz 8Credit Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books