This quiz works best with JavaScript enabled. Home > Finance > Credit > Credit – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Credit Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Formal sector loan sources are ..... A) Money lenders, friends, relatives. B) Land owners, employers. C) Banks, Cooperative societies, SHGs. D) Reserve Bank of India, The World Bank. Show Answer Correct Answer: C) Banks, Cooperative societies, SHGs. 2. The most responsible way to use credit is to be sure to ..... A) Shop for the best deals. B) Pay the full balance charged each month. C) Only get credit cards that give you rewards. D) Get as many credit cards as you can. Show Answer Correct Answer: B) Pay the full balance charged each month. 3. Terms of credit does not include A) Interest rate. B) Collateral. C) Cheque. D) Mode of repayment. Show Answer Correct Answer: C) Cheque. 4. Collateral is: A) Something of value that secures a loan to protect the lender. B) Department store charge cards. C) Open-ended Credit. D) None of above. Show Answer Correct Answer: A) Something of value that secures a loan to protect the lender. 5. Which of the following actions has NO impact on your credit score? A) You inquire about a credit card charge. B) You use a large percentage of your credit limit. C) You opened several new credit cards last week. D) You send in your credit card payment a couple days late. Show Answer Correct Answer: A) You inquire about a credit card charge. 6. An example of revolving credit is ..... A) Credit cards. B) Car loan. C) Home. D) Home loan. Show Answer Correct Answer: A) Credit cards. 7. Which one of the following is not a modern form of money? A) Demand deposits. B) Paper currency. C) Coins. D) Precious metals. Show Answer Correct Answer: D) Precious metals. 8. Why is credit so dangerous? A) Convenient. B) Overspending. C) Standard of living. D) Horses. Show Answer Correct Answer: B) Overspending. 9. What is the amount of money required to be stay in an account? A) Maximum Balance. B) Minimum Balance. C) Minimum Deposit. D) Maximum Deposit. Show Answer Correct Answer: B) Minimum Balance. 10. More money purchasing less goods and services means A) Deflation. B) Inflation. C) Stagflation. D) None of these. Show Answer Correct Answer: B) Inflation. 11. Which of the following would IMPROVE your credit score. A) Closing out old credit cards. B) Paying off your credit card bill. C) Using a large portion of your credit limit. D) Opening a new savings account. Show Answer Correct Answer: B) Paying off your credit card bill. 12. An agreement in which a buyer receives goods or services at the present time in exchange for a promise to pay for them at a later time. A) Debt. B) Credit. C) Interest Rate. D) Interest. Show Answer Correct Answer: B) Credit. 13. What is an annual fee? A) The act of transferring money. B) A yearly fee charged by a card issuer for being a card holder. C) The days between the last statement and the current statement. D) A fee charged to a cardholder's account once a payment is late. Show Answer Correct Answer: B) A yearly fee charged by a card issuer for being a card holder. 14. What is the best way to buy something big A) Use a credit card. B) Get a loan. C) Save up and pay in cash. D) Ask people for money. Show Answer Correct Answer: C) Save up and pay in cash. 15. Another name for your FICO score is your ..... ..... A) Winning score. B) Credit base. C) Credit line. D) Credit score. Show Answer Correct Answer: D) Credit score. 16. Interest A) The charge for borrowed money. B) Educational loan. C) Financial aid that does not need to be repaid. D) A short term personal loan to purchase a car. Show Answer Correct Answer: A) The charge for borrowed money. 17. Which action can hurt your credit score? I. Paying your phone bill late. II. Taking the bus to work.III. Maxing out several credit cards. IV. Using the internet to pay your bills A) I. B) I and II. C) I and III. D) III and IV. Show Answer Correct Answer: C) I and III. 18. A record of monthly payment status on a person's credit report, since the beginning of their credit history is called ..... A) Credit history. B) Payment history. C) US History. D) None of above. Show Answer Correct Answer: B) Payment history. 19. An individual is insolvent when they cannot A) Charge a purchase. B) Obtain a credit card. C) Pay their debts. D) Purchase an item because the money was left home. Show Answer Correct Answer: C) Pay their debts. 20. Which of the following is NOT included in an individual's credit report. A) Current and past addresses. B) Account balances. C) Bankruptcies and Foreclosures. D) Medical Information. Show Answer Correct Answer: D) Medical Information. ← PreviousNext →Related QuizzesFinance QuizzesCredit Quiz 1Credit Quiz 2Credit Quiz 3Credit Quiz 4Credit Quiz 5Credit Quiz 6Credit Quiz 8Credit Quiz 9Credit Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books