Quiz about Financial Literacy Vocabulary

Question 1

Using a credit card allows you to...

Accepted Answer

purchase something now and pay for it later.

Answer

put money into a savings account.

Answer

take money directly from your checking account.

Question 2

Before signing up for a credit card, you will want to find out...

Accepted Answer

all of these are correct.

Answer

if there is an annual fee.

Answer

what the interest rate is on purchases.

Answer

what types of late fees could be charged.

Question 3

A credit card company usually has a grace period for purchases. A grace period is...

Accepted Answer

the time period after you make a purchase until the time the interest starts to get charged.

Answer

the time period where interest builds on the amount you purchased.

Question 4

Overspending and accumulating too much debt can ruin your credit score

Accepted Answer

True

Answer

False

Question 5

Annual fee definition

Accepted Answer

When a credit card company charges you a fee each YEAR

Answer

When you withdraw money from the ATM and it charges you $1.50.

Question 6

Credit scores range from _____ to _____.

Accepted Answer

300, 850

Answer

350, 800

Answer

400, 650

Answer

400,800

Question 7

The percentage rate (APR) charged on purchases is called:

Accepted Answer

interest

Answer

annual fee

Answer

balance

Question 8

Amount charged if your payment is received after the billing date

Accepted Answer

late payment fee

Answer

overdue fee

Answer

withdrawal fee

Answer

loser fee

Question 9

Your credit score is NOT configured off of which of the following:

Accepted Answer

GPA

Answer

Payment history

Answer

Amount owed

Answer

Length of credit history

Question 10

Money that you make is called...

Accepted Answer

income

Answer

variable expense

Answer

propery taxes

Answer

fixed expense

Question 11

What type of expense is a Car payment?

Accepted Answer

Fixed

Answer

Variable

Question 12

What type of expense is a new pair of shoes?

Accepted Answer

variable

Answer

fixed

Question 13

A detailed report of your credit history prepared by a credit bureau and used by a lender to determine creditworthiness is called a:

Accepted Answer

Credit Report

Answer

Credit Card

Answer

Certificate of Creditworthiness

Answer

Report Card

Question 14

Who has the better credit score?

Accepted Answer

Monthly Income: $3,300
Credit Care Balance: Pays Full Balance
Student Loan Payment: $100

Answer

Monthly income: $1900
Credit Card Payment: $48
Credit Card Balance: 3857
Car Loan Payment: $218
Two late car loan payments

Question 15

What is money borrowed that must be repaid, usually with interest?

Accepted Answer

loan

Answer

check

Answer

checking account

Answer

savings account

Question 16

The amount of money the policyholder must pay on a loss.

Accepted Answer

Deductible

Answer

Discount

Answer

Bonus

Answer

Premium

Question 17

Fixed percentage indicated in the particular conditions that the policyholder should pay directly before receiving medical and hospital services covered by the policy.

Accepted Answer

Copayment

Answer

Coverage

Answer

Coinsurance

Answer

Premium

Question 18

What is an example of cash advance?

Accepted Answer

Going to the store and getting cash back from your credit card.

Answer

Asking your siblings for money.

Answer

Getting your paycheck early.

Answer

Going to the ATM

Question 19

Annual Percentage Rate (APR) is the yearly percentage rate of the finance charge.

Accepted Answer

True

Answer

False

Question 20

What can you buy or get with a good credit score?

Accepted Answer

All of the above

Answer

House

Answer

Car

Answer

Loan

Question 21

Paying the minimum payment on a credit card every month will:

Accepted Answer

Make the final amount paid substantially higher than the amount initially charged to the card

Answer

Pay a large percentage of the total balance owed every month

Answer

help the cardholder create a plan for paying of a credit card in a decent amount of time

Answer

allow the cardholder to avoid paying any interest charges

Question 22

What does APR stand for?

Accepted Answer

Annual percentage rate

Answer

Annual purchase rate

Answer

Approximate payment rotation

Answer

Authorization processing rate

Question 23

Having a high credit score will allow lenders to give you lower interest rates.

Accepted Answer

True

Answer

False

Question 24

Fee charged when a credit card holder does not make the minimum monthly payment by the due date.

Accepted Answer

Late Payment Fee

Answer

Introductory Rate

Answer

Over-the-Limit Fee

Answer

Annual Fee

Question 25

Fee charged if the credit card account balance goes over the set credit limit

Accepted Answer

Over-the-Limit Fee

Answer

Maintenance Fee

Answer

Set-Up Fee

Answer

Foreign Transaction Fee

Question 26

Fee charged if your monthly payment does not go through

Accepted Answer

Returned Payment Fee

Answer

Penalty Fee

Answer

Late Payment Fee

Answer

Borrower

Question 27

The maximum amount you may borrow on a credit card is known as:

Accepted Answer

credit limit

Answer

creditworthiness

Answer

credit report

Answer

variable rate of credit

Question 28

Over time, people who pay off their credit card balance in full every month will pay less in interest on their credit card.

Accepted Answer

true

Answer

false

Question 29

A plan for future spending and savings, weighing estimated income against estimated expenses.

Accepted Answer

Budget

Answer

Income

Answer

Expense

Answer

None of these

Question 30

What is the Term used to secure a House toward purchase?

Accepted Answer

Down Payment

Answer

Interest rate

Answer

Mortgage

Answer

Percentage

Question 31

What is the name for a House Loan?

Accepted Answer

Mortgage

Answer

Down Payment

Answer

Interest Rate

Answer

Percentage

Question 32

Financing

Accepted Answer

Taking out a loan to buy something, in this case a car.

Answer

The initial amount paid for a car, the rest is paid off over time.

Answer

The percentage of the loan paid by the borrower, it is set as an annual rate.

Answer

The ability of a person to pay back a loan as determined by the loan officer. Past history of paying bills and having a current income is critical.

Question 33

Interest Rate-

Accepted Answer

The percentage of the loan paid by the borrower, it is set as an annual rate.

Answer

Taking out a loan to buy something, in this case a car.

Answer

The initial amount paid for a car, the rest is paid off over time.

Answer

The ability of a person to pay back a loan as determined by the loan officer. Past history of paying bills and having a current income is critical.

Question 34

Down Payment-

Accepted Answer

The initial amount paid for a car, the rest is paid off over time.

Answer

Taking out a loan to buy something, in this case a car.

Answer

The percentage of the loan paid by the borrower, it is set as an annual rate.

Answer

The ability of a person to pay back a loan as determined by the loan officer. Past history of paying bills and having a current income is critical.

Question 35

Credit Worthiness-

Accepted Answer

The ability of a person to pay back a loan as determined by the loan officer. Past history of paying bills and having a current income is critical.

Answer

Taking out a loan to buy something, in this case a car.

Answer

The initial amount paid for a car, the rest is paid off over time.

Answer

The percentage of the loan paid by the borrower, it is set as an annual rate.

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