This quiz works best with JavaScript enabled. Home > Economics > Finance > Credit > Credit – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Credit Quiz 8 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Most of the important decisions regarding the savings and loan activities are taken by the ..... . A) Secretary. B) Treasurer. C) Group members. D) Group leader. Show Answer Correct Answer: C) Group members. 2. Company that collects information about your credit history and sells it to lenders A) Credit. B) Credit cards. C) Creditor. D) Credit Bureau. Show Answer Correct Answer: D) Credit Bureau. 3. Choose the best suggestion for building and maintaining a good credit score A) Have money in savings and protected against identity theft. B) Keep debt low and pay bills on time. C) Make safe investments and set clear financial goals. D) Comparison shop and follow a budget. Show Answer Correct Answer: B) Keep debt low and pay bills on time. 4. Which of the following is one of the 3 nationally recognized credit bureaus? A) Equifax. B) Grocery Store. C) Federal Reserve. D) Postal Office. Show Answer Correct Answer: A) Equifax. 5. Property put down as security for a loan is known as A) Capital. B) Character. C) Collateral. D) Capacity. Show Answer Correct Answer: C) Collateral. 6. An example of a bad credit score is ..... A) 850. B) 750. C) 300. D) 815. Show Answer Correct Answer: C) 300. 7. It is important that the formal credit is distributed more equally so that A) Poor can benefit from cheaper loans. B) Rich can get costly loans. C) Rich can get cheaper loans. D) None of these. Show Answer Correct Answer: A) Poor can benefit from cheaper loans. 8. Which is an execellent credit score A) 813. B) 555. C) 672. D) 713. Show Answer Correct Answer: A) 813. 9. Fee charged if the credit card account balance goes over the set credit limit. A) Over-the-limit fee. B) Returned Payment Fee. C) Credit Limit. D) Late Payment Fee. Show Answer Correct Answer: A) Over-the-limit fee. 10. A legal process in which a BUSINESS who cannot pay the debts reorganize their debt. A) Bankruptcy-Chapter 15. B) Bankruptcy-Chapter 13. C) Bankruptcy-Chapter 7. D) Bankruptcy-Chapter 11. Show Answer Correct Answer: D) Bankruptcy-Chapter 11. 11. SHGs help borrowers overcome the problem of lack of ..... A) Terms of credit. B) Loan. C) Collateral. D) Credit. Show Answer Correct Answer: C) Collateral. 12. Which of these show your credit history? A) Credit score. B) Credit report. C) Both. D) None of above. Show Answer Correct Answer: B) Credit report. 13. The extent to which a person or company is considered suitable to receive financial credit, often based on their reliability in paying money back in the past. A) Creditworthiness. B) Liquidity. C) Forfeiture. D) None of above. Show Answer Correct Answer: A) Creditworthiness. 14. Why are revolving credit accounts a dangerous idea? A) The interest rates on them are very high. B) It is easy to overspend and get deep in debt. C) They can lead to impulse buying. D) All are dangers of revolving credit. Show Answer Correct Answer: D) All are dangers of revolving credit. 15. The cost of credit expressed as a yearly interest rate. A) Penalty APR. B) Variable-Rate APR. C) Introductory Rate. D) APR. Show Answer Correct Answer: D) APR. 16. Why do banks keep a small proportion of the deposits as cash with themselves? A) To pay salary to their staff. B) To extend loan facility. C) To extend loan to the poor. D) To pay the depositors who might come to withdraw money. Show Answer Correct Answer: D) To pay the depositors who might come to withdraw money. 17. Something of value the bank can take if the borrower does not make the required loan payments. A) Collateral. B) Interest. C) Commercial credit. D) None of above. Show Answer Correct Answer: A) Collateral. 18. Property pledged to assure repayment of a loan? A) Collateral. B) Capital. C) Capacity. D) Closed-End Credit. Show Answer Correct Answer: A) Collateral. 19. The maximum amount you are allowed to carry as a balance on the card A) Interest. B) ARP. C) Credit limit. D) All of these. Show Answer Correct Answer: C) Credit limit. 20. Give an example of digital banking A) Cheque. B) Demand Draft. C) Deposit form. D) ATM card. Show Answer Correct Answer: D) ATM card. 21. The state of legally having been declared unable to pay off debts owed with available income A) Bankruptcy. B) Credit. C) Debt. D) Credit Rights. Show Answer Correct Answer: A) Bankruptcy. 22. What is the form of money in medieval period? A) Cowries. B) Paper Notes. C) Metallic Coins. D) Barter System. Show Answer Correct Answer: C) Metallic Coins. 23. What organization provides insurance to banks? A) NBUA. B) NYIC. C) FEDI. D) FDIC. Show Answer Correct Answer: D) FDIC. 24. What if I have bad credit? A) You can easily be approved for a loan. B) You may have to live with Mr. Trump. C) You have a high credit score. D) High interest rates on loans. Show Answer Correct Answer: D) High interest rates on loans. 25. Which of the following is not an informal source of credit? A) Money-lender. B) Relatives and Friends. C) Commercial Banks. D) Traders. Show Answer Correct Answer: C) Commercial Banks. 26. What is the correlation between your credit score and the interest rate you will pay? A) The higher the credit score, the lower the interest rate. B) The lower the credit score the lower the interest rate. C) There is no correlation between credit score and interest rate. D) None of above. Show Answer Correct Answer: A) The higher the credit score, the lower the interest rate. 27. Which of the following is NOT a factor in figuring your credit rating? A) College education. B) Credit history. C) Income to debt ratio. D) Number of cards owned. Show Answer Correct Answer: A) College education. 28. What does good credit say about you? A) That you make a lot of money. B) That you have many credit cards. C) That you are easy to trust with a loan or credit card. D) None of above. Show Answer Correct Answer: C) That you are easy to trust with a loan or credit card. 29. Your credit score falls between what range? A) 350-800. B) 300-800. C) 300-850. D) 350-850. Show Answer Correct Answer: C) 300-850. 30. Earnings from work or investment A) Outcome. B) Income. C) Underwhelm. D) Overcome. Show Answer Correct Answer: B) Income. ← PreviousNext →Related QuizzesFinance QuizzesEconomics QuizzesCredit Quiz 1Credit Quiz 2Credit Quiz 3Credit Quiz 4Credit Quiz 5Credit Quiz 6Credit Quiz 7Credit Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books