Which of the following is a disadvantage of consumer credit?

Investments or Capital Improvements

What can consumer credit provide in case of large expenditures?

Investments or Capital Improvements

What is Sales Credit primarily used for?

To make direct arrangements with the retailer for deferred payment

To receive a cash loan from a financial institution

To pay off other debts or expenses

What can Cash Credit be used to do?

To make a purchase using a credit card

To make immediate payment for a purchase

To defer payment to a future date

Where can a consumer typically get a Cash Credit from?

A financial institution like a bank or credit union

Which companies face a lot of competition in the credit card market according to the text?

MasterCard, Visa, American Express

What do fixed monthly payments for a mortgage loan usually include?

Interest charges and payment towards the principal of the loan

What is generally required as part of obtaining a mortgage loan?

A down payment, for example, 25% of property value

A full payment of the property value upfront

Who owns the property when a mortgage loan is taken out?

The purchaser owns the property, but it is used as collateral for the loan

The bank owns the property outright

The government owns the property

The property is owned jointly by the purchaser and the bank

Who typically provides installment loans?

Banks and other finance institutions

What are installment loans commonly used to purchase?

Major items such as cars and home appliances

What is a characteristic of demand loans?

They can be called in by the lender at any time.

What is typically not required for obtaining a demand loan?

A good financial status of the borrower

What can demand loans be used for?

Only for purchasing real estate

Exclusively for educational purposes

What is a common example of a Line of Credit?

Overdraft on your chequing account

What is a credit rating?

Your reputation for paying back money you owe

A financial statement showing your income and expenses

A document that lists all your purchased assets

A record of your employment history

Why is a good credit rating important?

It helps in managing personal finances

It is required for employment in financial institutions

It increases the limit on your credit card

It is used for calculating your taxes

What do Credit Bureaus do?

Gather and provide information on the credit history of potential customers

Provide loans to individuals and businesses

Offer financial advice to improve credit scores

Collect debts from individuals and companies

What is credit history?

The information on your personal credit behaviour and payment of debts

A list of your current and savings accounts

A record of your yearly financial transactions

The total amount of money you have borrowed

When should you start to establish a good credit rating?

As early as possible, such as when you are a college or university student

What is a recommended practice for using a credit card to build a good credit rating?

Apply for and use the credit card sparingly, paying off your balance each month

Max out the credit card to show you can handle large debts

Use the credit card only for emergencies

Transfer all your debts to the credit card

Which of the following is NOT a factor in establishing a credit rating according to the character criteria?

Is capable of getting and holding on to a job

What is considered a demonstration of financial responsibility when establishing a credit rating?

Demonstrated financial responsibility

When establishing a credit rating, what does 'capacity' refer to?

How much income is earned and the security of your job

The interest rates on your loans

Your credit history and past payments

What is considered 'capital' when establishing a credit rating?

What you are worth (monetary) based on assets you own

The amount of money you have in your savings account

Your educational qualifications

The total amount of credit available to you

Can assets be used in establishing a credit rating, and if so, how?

No, assets are not considered when establishing a credit rating

Yes, to increase your credit card limit

Lesson 6 Quiz Quiz

50 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is consumer credit?

Saving money to make a purchase in the future.

Borrowing money to make a purchase now and pay for it at some future time.

Lending money to businesses for investment purposes.

Using cash to make immediate purchases.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is NOT an example of consumer credit?

Home mortgages

Car loan

Health insurance

Credit card purchases

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which type of consumer credit typically carries the highest interest rates?

Home mortgages

Car loan

Personal bank loan

Credit card loans

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

According to the learning material, for what reasons should you generally borrow money?

To spend on vacations

To acquire something that will appreciate or earn income

To buy fashionable clothing

To dine out at expensive restaurants

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What should you generally avoid doing with borrowed money?

Investing in education

Purchasing assets that depreciate

Starting a business

Buying a house that will appreciate in value

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential consequence of borrowing money for things that depreciate?

Increasing personal wealth

Running up a lot of extra expenses

Improving credit score

Earning additional income

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one of the advantages of consumer credit?

Cost of credit

Impulse buying

Convenience

Credit rating

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Continue with Google

Continue with Email

Continue with Classlink

Continue with Clever

or continue with

Microsoft

Apple

Others

Already have an account?

Similar Resources on Wayground

47 questions

Economics - Intro to Economics

Quiz

•

9th - 12th Grade

50 questions

ULANGAN SUMATIF INFORMATIKA KELAS X TKJ

Quiz

•

10th Grade - University

51 questions

AEST Ag associates Industry Cert

Quiz

•

9th - 12th Grade

50 questions

XMAS QUIZ

Quiz

•

7th - 11th Grade

46 questions

Japanese Hiragana Letters Test

Quiz

•

KG - 12th Grade

49 questions

Conciencias Entrenadas

Quiz

•

8th - 12th Grade

50 questions

Taxes 101

Quiz

•

9th - 12th Grade

45 questions

Elements of Fiction Review

Quiz

•

10th - 12th Grade

Popular Resources on Wayground

8 questions

Spartan Way - Classroom Responsible

Quiz

•

9th - 12th Grade

15 questions

Fractions on a Number Line

Quiz

•

3rd Grade

14 questions

Boundaries & Healthy Relationships

Lesson

•

6th - 8th Grade

20 questions

Equivalent Fractions

Quiz

•

3rd Grade

3 questions

Integrity and Your Health

Lesson

•

6th - 8th Grade

25 questions

Multiplication Facts

Quiz

•

5th Grade

9 questions

FOREST Perception

Lesson

•

KG

20 questions

Main Idea and Details

Quiz

•

5th Grade

Discover more resources for Other

8 questions

Spartan Way - Classroom Responsible

Quiz

•

9th - 12th Grade

22 questions

El Imperfecto

Quiz

•

9th - 12th Grade

15 questions

ACT Reading Practice

Quiz

•

11th Grade

20 questions

Grammar

Quiz

•

9th - 12th Grade

18 questions

Mendelian Genetics

Quiz

•

10th - 12th Grade

20 questions

verbos reflexivos en español

Quiz

•

9th - 12th Grade

14 questions

Making Inferences From Samples

Quiz

•

7th - 12th Grade

25 questions

Early Cold War Quizziz

Quiz

•

11th Grade

Lesson 6 Quiz

What is consumer credit?

Which of the following is NOT an example of consumer credit?

Which type of consumer credit typically carries the highest interest rates?

According to the learning material, for what reasons should you generally borrow money?

What should you generally avoid doing with borrowed money?

What is a potential consequence of borrowing money for things that depreciate?

What is one of the advantages of consumer credit?

Which of the following is a disadvantage of consumer credit?

What can consumer credit provide in case of large expenditures?

What might be affected negatively by consumer credit?

Access all questions and much more by creating a free account

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for Other