This quiz works best with JavaScript enabled. Home > Finance > Credit > Credit – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Credit Quiz 16 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. John has always paid his bills on time. This will affect which of the 3 C's? A) Capacity. B) Character. C) Capital. D) Credibility. Show Answer Correct Answer: B) Character. 2. Which among the following options will be the cheapest source of credit in rural areas? A) Bank. B) Cooperative Society. C) Money-lender. D) Finance Company. Show Answer Correct Answer: B) Cooperative Society. 3. Money-lenders usually demand a 'security' from the borrower. What is the formal word used for the 'security', such as land, vehicle, livestock, building, etc.? A) Deposit. B) Collateral. C) Credit. D) Guarantee. Show Answer Correct Answer: B) Collateral. 4. Which one of the following is the main source of credit for rich urban households in India? A) Formal sector. B) Informal sector. C) Money lenders. D) Traders. Show Answer Correct Answer: A) Formal sector. 5. What is the main source of income for banks? A) Interest on loans. B) Interest on deposits. C) Difference between the interest charged on borrowers and depositors. D) None of these. Show Answer Correct Answer: C) Difference between the interest charged on borrowers and depositors. 6. One of the advantages of credit is A) The temptation to buy more than you want. B) An increased income. C) The convenience of use. D) Repossession of items if you don't pay your bill. Show Answer Correct Answer: C) The convenience of use. 7. A type of mortgage that the least amount of risk. A) Fixed Rate Mortgage. B) Adjustable Rate Mortgage. C) Balloon Mortage. D) Subprime Loan. Show Answer Correct Answer: A) Fixed Rate Mortgage. 8. Which is an advantage of having credit? A) Paying interest. B) Identity theft. C) Not having to carry around a lot of money. D) Bad credit. Show Answer Correct Answer: C) Not having to carry around a lot of money. 9. What do you have to have to declare bankruptcy? A) State Judge. B) Defendant. C) Proof. D) Tears. Show Answer Correct Answer: C) Proof. 10. No individual in India can legally refuse a payment made ..... A) Rupees. B) Money. C) Deposits. D) Cheque. Show Answer Correct Answer: A) Rupees. 11. Which one is the following is the important characteristic of modern form of currency? A) It is made from precious metal. B) It is made from thing of everyday use. C) It is authorized by commercial banks. D) It is authorized by the Government of the country. Show Answer Correct Answer: D) It is authorized by the Government of the country. 12. Which of the following is considered to be open-end credit? A) Mortgage. B) Car loan. C) Department store charge cards. D) Installment loan. Show Answer Correct Answer: C) Department store charge cards. 13. Another name for open ended credit is ..... credit A) Never ending. B) Revolving. C) Spinning. D) Endless. Show Answer Correct Answer: B) Revolving. 14. A credit score is intended to measure: A) Your financial success. B) The amount of money you have in the bank. C) The risk of your not repaying debt. D) Your income level. Show Answer Correct Answer: C) The risk of your not repaying debt. 15. Which of the following statements about credit scores is TRUE? A) Credit scores reflect how likely individuals are to repay their debts. B) Credit Scores range from the low 300's to the mid 800's. C) Each person has three credit scores. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. Which is not a Credit Bureau. A) Visa. B) TransUnion. C) Experian. D) Equifax. Show Answer Correct Answer: A) Visa. 17. In which of the following situations is having a good credit score important? A) Buying a car. B) Applying for a loan at a bank. C) Renting an apartment. D) All of the above. Show Answer Correct Answer: D) All of the above. 18. What would a 622 credit score be considered? A) Bad. B) Fair. C) Good. D) Excellent. Show Answer Correct Answer: B) Fair. 19. What is the single best thing you can do to help build a good credit score and keept it once you have it? A) Pay my bills on time. B) Keep balances on all accounts low. C) Take out only the credit I need when I need it. D) Pay cash. Show Answer Correct Answer: A) Pay my bills on time. 20. A responsible attitude toward honoring one's obligation? A) Character. B) Credit Bureau. C) Creditworthy. D) Capacity. Show Answer Correct Answer: A) Character. ← 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