This quiz works best with JavaScript enabled. Home > Economics > Finance > Credit > Credit – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Credit Quiz 9 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is not a type of revolving account? A) Store credit card. B) Gift card. C) Gas Card. D) Visa Card. Show Answer Correct Answer: B) Gift card. 2. A measure of your financial responsibility, often based on your credit history A) Capital. B) Capacity. C) Collateral. D) Character. Show Answer Correct Answer: D) Character. 3. FICO Scores are calculated from a lot of different credit data in your credit report and are scored from ..... to ..... A) 1 to 36. B) 100 to 1600. C) 300 to 850. D) 1 to 2400. Show Answer Correct Answer: C) 300 to 850. 4. An APR that may change depending on other factors. A) Variable-Rate APR. B) Penalty APR. C) Introductory Rate. D) APR. Show Answer Correct Answer: A) Variable-Rate APR. 5. They are called revolving credit accounts because A) It was a revolutionary concept when first created. B) These accounts circle around your credit. C) They can be an ongoing cycle of borrowing and repaying. D) None of above. Show Answer Correct Answer: C) They can be an ongoing cycle of borrowing and repaying. 6. A detailed report of an individual's credit history A) Credit Score. B) Credit history. C) Creditor. D) Credit Report. Show Answer Correct Answer: D) Credit Report. 7. Jean Chatzky said you have to do something how many times for it to become a habit? A) 21. B) 50. C) 15. D) 10. Show Answer Correct Answer: A) 21. 8. Number of Reserve Banks in a country is A) Five. B) Two. C) One. D) Three. Show Answer Correct Answer: C) One. 9. Which one is any fee associated with credit. A) Credit Report Fee. B) Minimum Payment. C) Finance Charge. D) Foreclosure. Show Answer Correct Answer: C) Finance Charge. 10. Which body (authority) supervises the functioning of formal sources of loans? A) Finance Ministry. B) Head Office of each Bank. C) Cooperative Societies. D) Reserve Bank of India. Show Answer Correct Answer: D) Reserve Bank of India. 11. Compounding interest is great when you are saving. How do you feel about it when it comes to loans? A) It is the best thing ever!. B) I can take it or leave it. C) No thank you. The loan already costs enough. D) None of above. Show Answer Correct Answer: C) No thank you. The loan already costs enough. 12. Experian, Equifax and TransUnion are the names of A) Government agencies. B) Banks. C) Credit bureaus. D) Credit card companies. Show Answer Correct Answer: C) Credit bureaus. 13. What is the correlation between your credit score and your credit worthiness. A) The lpwer your credit score, the more creditworthy you are. B) The higher your credit score, the more creditworthy you will be. C) There is no correlation between credit score and creditworthiness. D) None of above. Show Answer Correct Answer: B) The higher your credit score, the more creditworthy you will be. 14. O nly making the minimum payment on a credit card every month will: A) Pay off the credit card faster. B) Lower the amount total paid for the purchase. C) Make you independently wealthy. D) Take longer to pay off which will result in paying more interest, more money!. Show Answer Correct Answer: D) Take longer to pay off which will result in paying more interest, more money!. 15. Which of the following is NOT a safety tip to remember with credit cards? A) Shred any unwanted credit card offers or cards from the mail. B) Keep a lists of all cards, account numbers and phone numbers. C) Do not leave Cards lying around. D) Open as many credit card accounts as possible. Show Answer Correct Answer: D) Open as many credit card accounts as possible. 16. FICO stands for Fair ..... Corporation. A) Insider. B) Isaac. C) Interest. D) Industry. Show Answer Correct Answer: B) Isaac. 17. What is unique about an unsecured loan? A) Require collateral. B) Don't affect your credit score. C) Require no collateral. D) Interest free. Show Answer Correct Answer: C) Require no collateral. 18. A mortgage with higher interest rate that is sold to borrowers with low credit scores. A) Predatory Lending. B) Subprime Loan-Mortgage. C) 30 Year Fixed Interest Mortgage. D) Balloon Mortgage. Show Answer Correct Answer: B) Subprime Loan-Mortgage. 19. The original amount of money borrowed A) Interest. B) Annual Percentage Rate (APR). C) Credit History. D) Principal. Show Answer Correct Answer: D) Principal. 20. All of the following are examples of benefits of credit, EXCEPT: A) Increase your standards of living. B) Safer than cash. C) Buying power. D) Can tie up future income. Show Answer Correct Answer: D) Can tie up future income. 21. Is a 'depository institution' A) Bank. B) Credit Union. C) Both. D) Neither. Show Answer Correct Answer: C) Both. 22. Which is not one of the ways that the Fair Credit Reporting Act of 1970 protects consumers? A) The fairness of credit reporting. B) The accuracy of the credit report. C) The privacy of the consumer. D) The financial goals of the consumer. Show Answer Correct Answer: D) The financial goals of the consumer. 23. Why is good credit a necessity? A) To get a loan. B) To help you get a job. C) To help you rent an apartment. D) All of the above. Show Answer Correct Answer: D) All of the above. 24. Type of loan used specifically for purchasing a home is a ..... A) Student Loan. B) Credit Card. C) Mortgage. D) Equity Line of Credit. Show Answer Correct Answer: C) Mortgage. 25. Interest or a fee charged for buying on credit A) Credit limit. B) Credit. C) Finance charge. D) Subprime loan. Show Answer Correct Answer: C) Finance charge. 26. What is the risk of a Payday loan? A) Can pay it off quickly. B) Low interest. C) High interest. D) Money right away. Show Answer Correct Answer: C) High interest. 27. Person or organization in need of credit A) Co-Signer. B) Borrower. C) Creditor. D) Lender. Show Answer Correct Answer: B) Borrower. 28. Your credit limit or line of credit is based on your A) Ability to pay. B) Credit rating/FICO score. C) Age. D) Geographic location. Show Answer Correct Answer: B) Credit rating/FICO score. 29. FICO stays for ..... A) Fair Isaac Company. B) Fair Isaac Corporation. C) Fairly Incompetent Career. D) Free Investment Company. Show Answer Correct Answer: B) Fair Isaac Corporation. 30. The Truth in Lending Act of 1968 requires creditors to: A) Have a credit history that can help you obtain a job, or a loan. B) State the monthly finance charge and the Annual Percentage Rate on the monthly statement. C) Pay the complete balance each month. D) None of above. Show Answer Correct Answer: B) State the monthly finance charge and the Annual Percentage Rate on the monthly statement. ← PreviousNext →Related QuizzesFinance QuizzesEconomics QuizzesCredit Quiz 1Credit Quiz 2Credit Quiz 3Credit Quiz 4Credit Quiz 5Credit Quiz 6Credit Quiz 7Credit Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books