Credit Test
Quiz by AMANDA STOKLOSA
Feel free to use or edit a copy
includes Teacher and Student dashboards
Measure skillsfrom any curriculum
Measure skills
from any curriculum
Tag the questions with any skills you have. Your dashboard will track each student's mastery of each skill.
With a free account, teachers can
- edit the questions
- save a copy for later
- start a class game
- automatically assign follow-up activities based on students’ scores
- assign as homework
- share a link with colleagues
- print as a bubble sheet
27 questions
Show answers
- Q1Which of the following statements comparing credit and debit cards is TRUE?Credit cards pull money directly from your bank account, while debit cards get their money from Visa or MastercardWith debit cards, you're spending your own money at point of sale, but with credit cards, you're getting a loan that you need to pay back laterFar more businesses accept credit cards than debit cardsCredit card companies provide you with a monthly statement, while debit cards do not30s
- Q2Which of these statements best explains why it's often a good idea to pay more than the monthly amount due on an amortized loan?Every time you pay extra, the lender will reduce the interest rate they're charging by a small amountThe extra payment will be applied to the principal amount you owe, which will pay down your debt more quicklyThe extra payment will be applied to the interest you owe, which will reduce the overall cost of your loanAmortized loans typically have much higher interest rates than credit cards, so they're the best place to put your extra cash30s
- Q3Which of these credit payback strategies would lead to the HIGHEST overall cost?Making the minimum payment (3% of your credit card balance) every month on timePaying off your credit card bill in full every monthPaying 20% of your credit card balance every month on timeMaking the minimum payment (3% of your credit card balance) every month with an occasional late payment30s
- Q4Taylor is about to go car shopping, and she has $5000 saved that she can use for a down payment while still having extra cash in her emergency fund. She expects the exact model car she’s looking for to cost $35,000. If her top priority is having the lowest monthly payments possible, which advice should she follow?Put in $3500 for your down payment, and choose a loan with a long term lengthPut in $5000 for your down payment, and choose a loan with a long term lengthPut in $0 for your down payment, and choose a loan with a short term lengthPut in $2500 for your down payment, and choose a loan with a short term length30s
- Q5Reading through a credit card’s Schumer Box, you see the APR for a specific card is set at 9.99% - 23.99%. Which statement is true?Your APR will be within that range, depending on the strength of your credit historyIn this case, you want the highest APR in the range because you’ll earn moreThe APR on credit cards is usually fixed, so it won't be adjusted as long as you are a cardholderWhen given a range of APRs like this, you can assume most cardholders pay the lowest rate listed30s
- Q6A loan with a shorter term length will have __________ monthly payments, and you will pay __________ in total interest.higher, morelower, morehigher, lesslower, less30s
- Q7Why do credit card companies offer low minimum paymentsTo prevent customers from going into debtTo help improve the economyTo improve their customer service ratingsTo maximize their profitsAll of the above30s
- Q8What are the two most important factors in calculating your credit score?Length of credit history and new credit inquiriesAmounts owed and length of credit historyPayment history and types of accountsPayment history and total debt30s
- Q9Which of the following statements about credit scores does this bar graph support?It is easier for young people to get loans at lower interest rates because they are likely to have never been late with a paymentIt is more difficult for young people to borrow because they have less payment history for a lender to rely uponCredit scores tend to drop as you grow older because you are more likely to miss a payment at some pointWhen young people borrow, they are likely to have lower interest rates because their credit scores are lower30s
- Q10All of the following would show up on a credit report EXCEPT...Student loan activityCredit card payment historySalary of your current jobPayment history of your car loan30s
- Q11Your friend confides in you that he has a low credit score. What is the single best way for him to improve his score?Cancel his credit cardsMake on-time paymentsCheck his credit scoreGet a car loan30s
- Q12Which statement is correct?No credit is the samething as having bad creditBad credit is better than no creditNo credit is better than bad credit30s
- Q13Josh has a credit card with $1,000 limit. He has used 60% of his credit limit by purchasing $600 worth of items. This is an example of:authorized userutilizationvariable creditinstallment credit30s
- Q14Which is the best definition of credit?ability to purchase goods or services before paying for themthe ability to own nice things regardless of your incomepiggybacking off of someone's credit score to build creditthe amount money that a person borrows from a lender30s
- Q15Car loans are the same payment every month until the loan is paid off. This is an example of _________ credit.installment creditvariable creditunsecured creditrevolving credit30s