Credit Unit Test Question Preview (ID: 54688)

a) A high credit score will make it easier for him to get loans or credit cards with better interest rates

b) A low credit score will make it easier for him to get loans or credit cards with better interest rates

c) If his credit score is positive, lenders will allow him to pay back only a portion of his loan instead of the whole balance

d) Miguel will not be able to apply for colleges if he doesn't have a strong credit score

a) Payment history

b) Bank account balance

c) Mix of credit types

d) Length of credit history

a) 350

b) 550

c) 750

d) 950

a) Young adults

b) Middle-aged people

c) Senior citizens

d) Credit card debt is evenly distributed among all age groups

a) Avoid paying the bill every month so your bank account stays high

b) Pay the minimum monthly payment on time every month

c) Pay half your balance every month

d) Pay your full balance every month

a) The more money you spend on purchases, the higher your interest rate will be

b) A high interest rate means you'll pay MORE money total

c) A high interest rate means you'll pay LESS money total

d) Most credit cards do not charge any interest rate

a) Credit will take the money straight from his checking account, lowering his bank balance

b) Credit will force him to pay taxes on his bike purchase

c) Credit will charge him interest every month until he repays his full balance

d) Credit will force him to buy a cheaper bike than he could with debit

a) Are you responsible with your money?

b) Are you trying to make a bunch of small purchases over time or one large purchase?

c) Are you using the money to purchase an item that is a need or a want?

d) How much money do you have in your bank account?

a) Credit cards allow you to borrow money to pay for things, while debit cards take money straight from your own checking accoun

b) Wealthy people use credit cards, while people with lower incomes use debit cards

c) Credit cards come from credit unions, while debit cards come from banks

d) You can only use credit cards if you are over 25, but you can use debit cards as long as you are over 18

a) Kylie will have to give him the money, even if she doesn't want to

b) As soon as she lends him the money, they won't be able to be friends any more

c) It might cause problems in their friendship if Justin doesn't repay her on time or if he then asks for even more money

d) The school won't sell him tickets if they know he borrowed the money instead of earning it himself

a) You don't have to repay your friends or family if you don't want to

b) You can borrow more money from a friend or family member because they have more cash than banks

c) Friends and family cannot legally charge you interest on the loan, but banks can

d) Friends and family will typically work with you to set up a repayment plan you can afford

a) The total amount you borrowed

b) The amount of interest you pay over the whole length of the loan

c) The total amount of money you owe

d) The total number of months you will have to repay the loan