This quiz works best with JavaScript enabled. Home > Finance > Credit > Credit – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Credit Quiz 12 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which is an execellent credit score A) 672. B) 555. C) 713. D) 813. Show Answer Correct Answer: D) 813. 2. Fee charged if the credit card account balance goes over the set credit limit. A) Credit Limit. B) Late Payment Fee. C) Over-the-limit fee. D) Returned Payment Fee. Show Answer Correct Answer: C) Over-the-limit fee. 3. A legal process in which a BUSINESS who cannot pay the debts reorganize their debt. A) Bankruptcy-Chapter 7. B) Bankruptcy-Chapter 11. C) Bankruptcy-Chapter 13. D) Bankruptcy-Chapter 15. Show Answer Correct Answer: B) Bankruptcy-Chapter 11. 4. SHGs help borrowers overcome the problem of lack of ..... A) Terms of credit. B) Collateral. C) Credit. D) Loan. Show Answer Correct Answer: B) Collateral. 5. 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. 6. 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. 7. 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. 8. The cost of credit expressed as a yearly interest rate. A) Introductory Rate. B) APR. C) Penalty APR. D) Variable-Rate APR. Show Answer Correct Answer: B) APR. 9. Why do banks keep a small proportion of the deposits as cash with themselves? A) To extend loan to the poor. B) To extend loan facility. C) To pay salary to their staff. 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. 10. 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. 11. Property pledged to assure repayment of a loan? A) Capital. B) Closed-End Credit. C) Capacity. D) Collateral. Show Answer Correct Answer: D) Collateral. 12. 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. 13. Give an example of digital banking A) Cheque. B) Demand Draft. C) Deposit form. D) ATM card. Show Answer Correct Answer: D) ATM card. 14. The state of legally having been declared unable to pay off debts owed with available income A) Bankruptcy. B) Debt. C) Credit. D) Credit Rights. Show Answer Correct Answer: A) Bankruptcy. 15. 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. 16. What organization provides insurance to banks? A) NBUA. B) FDIC. C) FEDI. D) NYIC. Show Answer Correct Answer: B) FDIC. 17. What if I have bad credit? A) High interest rates on loans. B) You can easily be approved for a loan. C) You have a high credit score. D) You may have to live with Mr. Trump. Show Answer Correct Answer: A) High interest rates on loans. 18. 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. 19. 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. 20. Which of the following is NOT a factor in figuring your credit rating? A) Credit history. B) College education. C) Number of cards owned. D) Income to debt ratio. Show Answer Correct Answer: B) College education. ← PreviousNext →Related QuizzesFinance QuizzesCredit Quiz 1Credit Quiz 2Credit Quiz 3Credit Quiz 4Credit Quiz 5Credit Quiz 6Credit Quiz 7Credit Quiz 8Credit Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books