This quiz works best with JavaScript enabled. Home > Economics > Finance > Credit > Credit – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Credit Quiz 6 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A letter grade based on a consumer's credit score that indicates his or her creditworthiness? A) Credit Rating. B) Credit Score. C) Capacity. D) Credit Injury. Show Answer Correct Answer: A) Credit Rating. 2. What is debt utilization? A) Your debt to credit ratio. B) How much of your credit you actually use. C) Both of these. D) None of above. Show Answer Correct Answer: C) Both of these. 3. Which behaviors might lead someone to have a low credit score? A) Having a debit card. B) Always baying the full balance of a credit card each month. C) Having a long credit history. D) Missing a car payment. Show Answer Correct Answer: D) Missing a car payment. 4. A business that gathers, stores, and sells credit information to other businesses? A) Credit Report. B) Credit Bureau. C) Character. D) Credit Freeze. Show Answer Correct Answer: B) Credit Bureau. 5. Which membership is exclusive, or requires something special? A) Bank. B) Credit Union. C) Both. D) Neither. Show Answer Correct Answer: B) Credit Union. 6. This term refers to the type of accounts that make up a consumer's credit report. A) Credit Mix. B) Credit variability. C) Credit combination. D) None of above. Show Answer Correct Answer: A) Credit Mix. 7. Firm that collects information about the credit-worthiness of consumers A) Credit history. B) Cosigner. C) Credit bureau or credit reporting agency. D) Credit report. Show Answer Correct Answer: C) Credit bureau or credit reporting agency. 8. What organization provides insurance to credit unions? A) FCUA. B) NBUA. C) NCUA. D) FDUA. Show Answer Correct Answer: C) NCUA. 9. The legal process to get out of debt when you can no longer make all your payments is called ..... A) Financial disaster. B) Trouble. C) Bankruptcy. D) Indebtedness. Show Answer Correct Answer: C) Bankruptcy. 10. A car loan is an example of A) Unsecured debt. B) Mortgage. C) Lease. D) Installment loan. Show Answer Correct Answer: D) Installment loan. 11. What is a credit report? A) A Report card. B) Statement of every payment ever. C) Nothing. D) None of above. Show Answer Correct Answer: B) Statement of every payment ever. 12. What does APR stand for? A) American Percentage Rate. B) American Peoples Reports. C) Annual Percentage Rate. D) Annual Progress Report. Show Answer Correct Answer: C) Annual Percentage Rate. 13. All of the following are dangers of credit, EXCEPT: A) Can be expensive. B) Overspending. C) Can increase your financial options. D) Can be dangerous in tough economic times. Show Answer Correct Answer: C) Can increase your financial options. 14. After ..... or ....., if the SHG is regular in savings, it becomes eligible for availing loan from the bank. A) 5 years or 6 years. B) 6 months or 1 year. C) A year or two. D) 3 years or 4 years. Show Answer Correct Answer: C) A year or two. 15. The amount of time your are obligated to make payments on a loan is the A) Annual percentage rate. B) Interest rate. C) Principal. D) Term. Show Answer Correct Answer: D) Term. 16. The maximum amount you may borrow on a credit card is known as: A) Credit limit. B) Creditworthiness. C) Credit report. D) Variable rate of credit. Show Answer Correct Answer: A) Credit limit. 17. ..... and ..... credit is crucial for the country's development A) Accessible and affordable. B) Timely and feasible. C) Less and high amount of. D) Cheap and affordable. Show Answer Correct Answer: D) Cheap and affordable. 18. A legal process in which PEOPLE who cannot pay the debts must surrender most of their property. A) Bankruptcy-Chapter 7. B) Bankruptcy-Chapter 13. C) Bankruptcy-Chapter 11. D) Bankruptcy-Chapter 15. Show Answer Correct Answer: A) Bankruptcy-Chapter 7. 19. Money received, especially on a regular basis, for work or through investments A) Paycheck. B) Income. C) Credit. D) None of above. Show Answer Correct Answer: B) Income. 20. The smallest payment a customer can make each statement period to keep the account in good standing. This is based on the balance during that pay period. A) Cash advance. B) Balance transfer. C) Minimum payment. D) None of above. Show Answer Correct Answer: C) Minimum payment. 21. Main advantages of a Debit Card A) Using your own money. B) Could acquire overdraft fees, and ATM charges if you try to take money out of an ATM that is not in your ATM network (additional charges for out-of network banks). C) BANKRUPTCY. D) FORECLOSURE. Show Answer Correct Answer: A) Using your own money. 22. In which country is the Grameen Bank meeting the credit needs of over 6 million poor people? A) Bangladesh. B) Bhutan. C) Sri Lanka. D) Nepal. Show Answer Correct Answer: A) Bangladesh. 23. What is the range of credit scores? A) 100-1000. B) 100-200. C) 50-150. D) 300-850. Show Answer Correct Answer: D) 300-850. 24. Financial Bankruptcy is ..... A) The inability to earn more money. B) The inability to pay one's debts. C) When a bank fails. D) None of above. Show Answer Correct Answer: B) The inability to pay one's debts. 25. A fee a bank, credit card, or lender charges to purchase something & pay for it over time A) Finance Rate. B) Interest. C) Credit. D) Dividend. Show Answer Correct Answer: B) Interest. 26. The fact that Ed owns two apartment buildings made it easier for him to obtain a loan. This will affect which of the 3 C's? A) Character. B) Credibility. C) Capacity. D) Capital. Show Answer Correct Answer: D) Capital. 27. This is when the interest rate will remain the same for the life of the loan A) Adjustable rate. B) Balloon rate. C) Never changing rate. D) Fixed rate. Show Answer Correct Answer: D) Fixed rate. 28. The actions or behaviors in which people SHOULD engage when they use credit A) Credit Report. B) Credit Rights. C) Credit Responsibilities. D) Credit History. Show Answer Correct Answer: C) Credit Responsibilities. 29. What is the minimum payment? A) What you should pay each month. B) Minimum you should pay each month. C) Annual percentage rate. D) Interest payment. Show Answer Correct Answer: B) Minimum you should pay each month. 30. The amount you must pay on a credit card, based on a percentage of the outstanding balance. A) Monthly statement. B) Minimum monthly interest charge. C) Minimum payment. D) Minimum fee. Show Answer Correct Answer: C) Minimum payment. ← PreviousNext →Related QuizzesFinance QuizzesEconomics QuizzesCredit Quiz 1Credit Quiz 2Credit Quiz 3Credit Quiz 4Credit Quiz 5Credit Quiz 7Credit Quiz 8Credit Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books