Quiz on Debt and Credit

What is the term for money owed to another person or company?

• Equity

• Collateral

• Debt

Which type of credit automatically renews whenever a payment is made to reduce the debt?

• Installment Credit

• Revolving Credit

• Appreciating Asset

Nora bought a house, and its value has been increasing every year. What is an asset that increases in value over time called?

• Appreciating Asset

• Installment Credit

• Collateral

Aria took out a loan to buy a car but was unable to repay it on time. What is this situation called?

• Default

• Installment Credit

• Appreciating Asset

Zoe is applying for a loan at the bank. The bank checks a number to determine Zoe's creditworthiness. What is this number called?

• A number representing a consumer's creditworthiness

• A list of all debts a person owes

• A summary of a person's assets

Emma is applying for a loan at her bank. The bank wants to check her credit history before approving the loan. What organization will the bank contact to collect and provide credit rating information?

• To collect and provide credit rating information

• To manage personal savings accounts

• To offer investment advice

Personal finance is _______ behavior and _________ head knowledge?

• 20%, 80%

• 80%, 20%

• 50%, 50%

Samuel has been following the Foundations for financial peace. He has paid for his car with cash, gotten out of debt, and is now looking to take the next step. What is the 5th Foundation?

• Pay for a car with cash

• Get out and stay out of debt

• Build wealth and give

Lily is planning her monthly budget. She decides to assign a specific job to every dollar she earns, making sure nothing is left unallocated. What budgeting method is Lily using?

• Where you have zero $

• Where you assign a job to all of your income

• You have 0 income

Olivia wants to stick with her budget. What are some ways she can do this?

• Ask for a loan and think weekly

• Keep it real and learn to say no

• Find a budget buddy and make a budget firm