This quiz works best with JavaScript enabled. Home > Finance > Credit > Credit – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Credit Quiz 14 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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. 2. The original amount of money borrowed A) Principal. B) Credit History. C) Annual Percentage Rate (APR). D) Interest. Show Answer Correct Answer: A) Principal. 3. 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. 4. Is a 'depository institution' A) Bank. B) Credit Union. C) Both. D) Neither. Show Answer Correct Answer: C) Both. 5. Which is not one of the ways that the Fair Credit Reporting Act of 1970 protects consumers? A) The accuracy of the credit report. B) The privacy of the consumer. C) The financial goals of the consumer. D) The fairness of credit reporting. Show Answer Correct Answer: C) The financial goals of the consumer. 6. 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. 7. Type of loan used specifically for purchasing a home is a ..... A) Mortgage. B) Student Loan. C) Equity Line of Credit. D) Credit Card. Show Answer Correct Answer: A) Mortgage. 8. Interest or a fee charged for buying on credit A) Finance charge. B) Credit. C) Subprime loan. D) Credit limit. Show Answer Correct Answer: A) Finance charge. 9. What is the risk of a Payday loan? A) High interest. B) Money right away. C) Low interest. D) Can pay it off quickly. Show Answer Correct Answer: A) High interest. 10. Person or organization in need of credit A) Co-Signer. B) Lender. C) Borrower. D) Creditor. Show Answer Correct Answer: C) Borrower. 11. 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. 12. FICO stays for ..... A) Fair Isaac Corporation. B) Fair Isaac Company. C) Free Investment Company. D) Fairly Incompetent Career. Show Answer Correct Answer: A) Fair Isaac Corporation. 13. 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. 14. Money you pay up front toward the purchase to reduce the loan amount A) Down payment. B) Up front payment. C) Principal. D) Interest. Show Answer Correct Answer: A) Down payment. 15. A typical Self Help Group usually has A) 100-200 members. B) 50-100 members. C) Less than 10 members. D) 15-20 members. Show Answer Correct Answer: D) 15-20 members. 16. What does credit measure? A) How likely someone is to pay back a loan. B) How well someone has made payments in the past. C) How trustworthy someone is with money. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. A legal process in which PEOPLE 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: C) Bankruptcy-Chapter 13. 18. A credit score helps lenders decide if you're a A) A good person. B) Person with a good employment history. C) Good credit risk. D) An adult. Show Answer Correct Answer: C) Good credit risk. 19. The act of transferring debt from one credit card account to another. A) Annual Transfers. B) Balance Transfers. C) Penalty APR. D) Variable-Rate APR. Show Answer Correct Answer: B) Balance Transfers. 20. How likely a lender determines you are to default on or repay your debts is called ..... A) Your financial future. B) Your credit-ability. C) Your creditworthiness. D) None of above. Show Answer Correct Answer: C) Your creditworthiness. ← 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