Credit Quiz 4 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. Which of the following does not come under modern forms of money?

Correct Answer: D) Loan Payments.

2. When may a person view his/her credit report for free?

Correct Answer: B) Once a year, from each of the three main credit reporting agencies.

3. A typical SHG has ..... members.

Correct Answer: A) 15 to 20.

4. Which of the following is NOT a positive spending practice?

Correct Answer: A) Only shop at stores you like.

5. Which of the following is considered an advantage to using a debit card to make purchases?

Correct Answer: D) All of the above.

6. Which is NOT a way to establish credit?

Correct Answer: C) Getting married, having a few kids, buying some stuff, retiring to Florida, and dying.

7. How can you improve your credit score?

Correct Answer: D) All of the above.

8. The ability to borrow money in return for a promise of future payment.

Correct Answer: A) Credit.

9. How can someone between ages 18-20 establish credit?

Correct Answer: A) Checking/savings account.

10. Consumer reporting agencies or credit reporting agencies are also called

Correct Answer: D) Credit bureaus.

11. Under Barter System the exchange of goods require .....

Correct Answer: A) Double coincidence of wants.

12. The 3 credit bureaus that determine your FICO score are:

Correct Answer: A) Equifax, Transunion, and Experian.

13. When your billing statement shows no outstanding balance and no new charges have been incurred.

Correct Answer: C) Zero balance.

14. Two major credit scoring systems are

Correct Answer: B) FICO and Vantage Score.

15. Amount of time before interest starts accumulating on charged purchases is the .....

Correct Answer: D) Grace period.

16. A Hard Credit Inquiry is .....

Correct Answer: B) Occurs when a lender checks your credit in order to make a lending decision.

17. What does a credit card do?

Correct Answer: D) They money is borrowed no and it's paid back later.

18. What is a Disadvantage of having credit?

Correct Answer: A) Identity theft.

19. Which of the following is an advantage of using a credit card?

Correct Answer: B) Consumers can purchase things now, and pay for them later in the event of an emergency.

20. A Soft Credit Inquiry is .....

Correct Answer: A) Occurs where you check your own credit or a lender checks your credit to pre-approve you.