Credit Quiz

Okay, let’s take a break from the basics and test your retention. Answer the following questions below and, when you’re done, check your understanding!


1.) Credit is a type of:

a. Borrowing money

b. Saving

c. Investing

 

2.) Which is a typical use of credit?

a. Using a credit card to make a purchase online

b. Taking out an installment loan from a lender

c. Opening a new line of credit at a credit union

d. All of the above

 

3.) Finish this sentence: Credit is a form of…

a. Payday lending

b. Tax Information

c. Budgeting

d. Borrowing that allows us to make purchases now and pay for them later.

 

4.) Your credit includes…

a. Your credit report

b. Your credit history

c. Your credit score

d. Your credit accounts

e. Your credit limit

f. All the above

 

5.) Your credit card balance is…

a. The cost of borrowing money

b. The limit of money you can borrow or use on a credit card

c. The number of airline points you accumulate through using the card

d. What you owe the credit card company at the end of the month

 

6.) True or False: Credit cards enable you to make large purchases and pay them off slowly over time.

a. True

b. False

 

7.) True or False: Mismanaging a credit card can cause unexpected expenses in the form of interest and fees.

a. True

b. False

 

Answers: 1, a. 2, d. 3, d. 4, f. 5, d. 6, a. 7, a

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