Credit Unit Test Review

Front

Your credit score may be based on which of the following:
- Whether or not you pay your bills on time.
- Number of credit cards held and their balances.
- The number of years one has had credit.

Back

All of the above.

Front

If you have a low credit score, you may face which of the following: May be turned down for a loan, You could have difficulty renting an apartment, You might not be hired for a job, None of the above, All of the above

Back

All of the above

Front

When choosing a credit card, be sure to look for: High APR, No Annual Fee, A short grace period, All of the above

Back

No Annual Fee

Front

When used and managed properly, credit cards offer us:

Back

The ability to build a credit history

Front

Jane borrows $5000 at a 5% add-on rate for one year. What is the finance charge?

Back

$250

Front

Sandy borrows $8000 at an 8% add-on rate for four years. What is the finance charge?

Back

$2560

Front

If you want to lower the finance charge, should you shop for: A card with rewards, A card with a higher interest rate, A card with a high APR, A card with a lower interest rate

Back

A card with a lower interest rate

Front

The word “capacity” refers to the following: How reliable is your income? Do you pay child support? Do you have other sources of income? None of the above All of the above.

Back

All of the above.

Front

A common advantage of using credit is:

Back

acquire something needed now

Front

Utility companies and medical service organizations commonly offer ______ Credit.

Back

single-payment