This quiz works best with JavaScript enabled. Home > Finance > Credit > Credit – Quiz 19 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Credit Quiz 19 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Between what number wold you have an excellent credit score? A) 760-850. B) 851-941. C) 620-659. D) 700-759. Show Answer Correct Answer: A) 760-850. 2. Passed in 1968, requiring all banks to calculate credit costs in the same way. A) Equal Credit Opportunity Act. B) Truth in Lending Act. C) Fair Credit Reporting Act. D) Fair Credit Billing Act. Show Answer Correct Answer: B) Truth in Lending Act. 3. Which is not a good tip to build credit A) Use for necessities like gas or groceries, then pay off before the next billing cycle. B) Cosign on a credit card with your guardians. C) Buy a new outfit and only pay the minimum balance each month. D) Only spend what you can afford. Show Answer Correct Answer: C) Buy a new outfit and only pay the minimum balance each month. 4. Money you earn each month is called ..... A) Expense. B) Income. C) Gone. D) Spending plan. Show Answer Correct Answer: B) Income. 5. A financial institution which accepts deposits from public and provide loans to them. A) Share Market. B) Insurance Company. C) Banks. D) All of these. Show Answer Correct Answer: C) Banks. 6. Which of the 3 C's of credit is your ability to repay the loan? A) Character. B) Capacity. C) Collateral. D) Capital. Show Answer Correct Answer: B) Capacity. 7. An example of installment credit is ..... A) Credit card. B) Home/car loan. C) Debt card. D) None of above. Show Answer Correct Answer: B) Home/car loan. 8. Who is the founder of Grameen Bank of Bangladesh? A) Mohammad Yunus. B) Mohammad Kasim. C) Mohammad Tuglaq. D) Mohammad Zakir. Show Answer Correct Answer: A) Mohammad Yunus. 9. A loan that is backed by something of value to insure payment is a A) Subprime loan. B) Secured loan. C) Unsecured loan. D) Credit card loan. Show Answer Correct Answer: B) Secured loan. 10. What is the most important credit score Key Factor? A) How many credit cards you have. B) How you Pay your Bills. C) How much money you have. D) Your oldest credit card. Show Answer Correct Answer: B) How you Pay your Bills. 11. ..... is the extra money paid to a lender for the use of the lender's money. A) Service. B) Good. C) Loan. D) Interest. Show Answer Correct Answer: D) Interest. 12. What is the classic FICO credit score scale? A) 100-500. B) 300-1000. C) 500-900. D) 300-850. Show Answer Correct Answer: D) 300-850. 13. Which group of scores might not get a loan or credit card? A) 801-850. B) 751-800. C) 721-750. D) 620 and below. Show Answer Correct Answer: D) 620 and below. 14. Person with strong established credit who signs credit app & contract along with borrower A) Principal. B) Grace period. C) Cosigner. D) Collateral. Show Answer Correct Answer: C) Cosigner. 15. The amount of money borrowed A) Principal. B) Principle. C) Creditor. D) Credit. Show Answer Correct Answer: A) Principal. 16. Interest payment will be higher on a home loan on account of A) High tenure of loan. B) Lack of proper documentation. C) High risk of borrower profile. D) All of these. Show Answer Correct Answer: D) All of these. 17. The length of time between your statements, often one month in length. A) Billing cycle. B) Credit limit. C) Grace period. D) None of above. Show Answer Correct Answer: A) Billing cycle. 18. A measure of financial ability to repay a loan A) Capacity. B) Character. C) Collateral. D) Capital. Show Answer Correct Answer: A) Capacity. 19. What describes overdrafts the best? A) When you go into the negative amount (deficit) in your bank account. B) When you go into the negative amount (surplus) in your bank account. C) When you spend too much money at once. D) None of above. Show Answer Correct Answer: A) When you go into the negative amount (deficit) in your bank account. 20. An asset that the borrowers own, and use this as a guarantee to the lender, until the loan is repaid. A) Security. B) Collateral. C) Property. D) All of these. Show Answer Correct Answer: B) Collateral. ← 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