This quiz works best with JavaScript enabled. Home > Finance > Credit > Credit – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Credit Quiz 1 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The only thing measured in a FICO score is: A) Height. B) Weight. C) Debt. D) Responsibility. Show Answer Correct Answer: C) Debt. 2. When a bank takes possession of a home because the borrower has failed to make loan payments, it is called A) Underwater. B) Mortgage. C) Assessment. D) Foreclosure. Show Answer Correct Answer: D) Foreclosure. 3. After a year or two if the SHG is regular in savings, it becomes eligible for availing loan from A) Cooperative societies. B) Money lenders. C) Bank. D) Traders. Show Answer Correct Answer: C) Bank. 4. Which of the following is not a factor in determining a FICO score? A) Using credit cards. B) Taking out a mortgage on a house. C) Getting a personal loan from a bank. D) Paying cash for all purchases. Show Answer Correct Answer: D) Paying cash for all purchases. 5. Which of these is LEAST LIKELY to determine credit worthiness? A) Payment history. B) Length of employment. C) Personal health history. D) Personal educational background. Show Answer Correct Answer: C) Personal health history. 6. What is a deadbeat in the credit card world? A) Someone who misses a few monthly payments. B) Someone who has stopped paying their monthly payments. C) Someone who pays more than the minimum payment each month. D) Someone who pays their bill in full each month. Show Answer Correct Answer: D) Someone who pays their bill in full each month. 7. How many free credit reports are you legally entitled to each year? A) One credit report each year. B) Three credit reports each year. C) One credit report from each credit bureau. D) Three credit reports from each credit bureau. Show Answer Correct Answer: C) One credit report from each credit bureau. 8. What does a debit card do? A) Total money earned before taxes are paid. B) Withdraws money from the bank account immediately. C) Money is owed. D) Total money earned. Show Answer Correct Answer: B) Withdraws money from the bank account immediately. 9. You should use credit to buy ..... A) Car. B) New video system. C) New phone. D) None of above. Show Answer Correct Answer: A) Car. 10. Certain charges that can be incurred when using a credit card. A) Finance charges. B) Penalty charges. C) Prime charges. D) None of above. Show Answer Correct Answer: A) Finance charges. 11. A number assigned to a person as a general indication of their creditworthiness A) Credit report. B) Credit score. C) Loan. D) Loan score. Show Answer Correct Answer: B) Credit score. 12. On average, how much of a person's take-home pay is sent back out for debt payments? A) 8%. B) 12%. C) 25%. D) 40%. Show Answer Correct Answer: C) 25%. 13. The cost for Dan's college next year is $ 20, 000. He took out a loan for $ 6, 000 and received a scholarship for $ 2, 500. How much will still be left to pay? A) $ 11, 500. B) $ 12, 500. C) $ 11, 000. D) $ 16, 500. Show Answer Correct Answer: A) $ 11, 500. 14. A record of your past borrowing and repayments A) Credit history. B) Credit Bureau. C) Credit report. D) Credit score. Show Answer Correct Answer: A) Credit history. 15. The fee incurred when you exceed our credit limit on your credit card is the ..... A) Annual fee. B) Cash-advance fee. C) Service fee. D) Over the limit fee. Show Answer Correct Answer: D) Over the limit fee. 16. What does FICO score not measure? A) New Debt. B) Debt History. C) Savings Account Balance. D) Types of Debt. Show Answer Correct Answer: C) Savings Account Balance. 17. A stipulation in the loan (credit) agreement that requires the entire remaining balance due if you miss a single payment is a(n) ..... clause. A) Subprime. B) Secured. C) Acceleration. D) Balloon payment. Show Answer Correct Answer: C) Acceleration. 18. The cost of credit expressed as a yearly interest rate is known as: A) Annual Percentage Rate (APR). B) Annual Fee. C) Penalty APR. D) Introductory Rate. Show Answer Correct Answer: A) Annual Percentage Rate (APR). 19. When a person brings an item to a pawnshop to obtain cash, the transaction is considered a(n): A) Collateralized loan. B) Custodial payment. C) Unsecured loan. D) Sales agreement. Show Answer Correct Answer: A) Collateralized loan. 20. Which of the following is NOT a positive spending habit? A) Find alternative activities to shopping. B) Use credit for your wants and not needs. C) Consider stores that sell "seconds, " rebuilt, or used products. D) Wait and shop when there are sales. Show Answer Correct Answer: B) Use credit for your wants and not needs. Next →Related QuizzesFinance QuizzesCredit Quiz 2Credit Quiz 3Credit Quiz 4Credit Quiz 5Credit Quiz 6Credit Quiz 7Credit Quiz 8Credit Quiz 9Credit Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books