#1
Which of the following is a type of consumer credit?
Mortgage
Corporate bond
Stock
Treasury bill
#2
What is the function of a financial institution?
To provide consumer credit
To manufacture goods
To conduct medical research
To build infrastructure
#3
Which of the following is NOT a type of financial institution?
Credit union
Bank
Hospital
Insurance company
#4
What is the main difference between revolving credit and installment credit?
Revolving credit has a fixed repayment schedule, while installment credit does not.
Installment credit has a fixed repayment schedule, while revolving credit does not.
Both types of credit have the same repayment schedule.
Neither revolving nor installment credit requires repayment.
#5
What is a credit score?
The amount of money a person owes
A numerical representation of a person's creditworthiness
The interest rate on a loan
The length of time a loan is taken out for
#6
Which of the following factors can affect your credit score?
Your income level
Your age
Your employment history
All of the above
#7
What is the term for the interest rate charged on a credit card balance?
Annual percentage rate (APR)
Federal funds rate
Prime rate
Discount rate
#8
Which of the following is NOT a common type of consumer loan?
Auto loan
Student loan
Commercial loan
Personal loan
#9
What is the term for the process of transferring high-interest debt to a new credit card with a lower interest rate?
Debt consolidation
Credit counseling
Balance transfer
Loan refinancing
#10
What is the maximum amount of time you typically have to repay a payday loan?
One month
Three months
Six months
One year
#11
Which of the following is an example of a secured loan?
Credit card
Mortgage
Student loan
Personal loan
#12
What is the primary function of a credit union?
To generate profits for shareholders
To provide loans and financial services to its members
To issue stocks and bonds
To regulate the banking industry
#13
Which of the following is NOT a factor that can impact your credit score?
Payment history
Credit inquiries
Level of education
Length of credit history
#14
What is the purpose of a grace period on a credit card?
To provide extra time to pay off a balance without interest
To lower the credit limit
To increase the interest rate
To waive annual fees
#15
What is the term for a loan that is backed by collateral?
Unsecured loan
Secured loan
Payday loan
Installment loan
#16
Which of the following statements about credit cards is true?
Credit cards typically have lower interest rates than personal loans.
Using a credit card responsibly can help build a positive credit history.
Credit cards never charge fees for late payments.
Credit cards do not have any impact on your credit score.
#17
What is the purpose of a credit report?
To show your current bank balance
To track your daily expenses
To provide a record of your credit history
To calculate your net worth
#18
Which of the following is a characteristic of subprime lending?
Low interest rates
Loans offered to individuals with high credit scores
Higher interest rates and fees
Government subsidies
#19
What is the purpose of a co-signer on a loan?
To provide collateral for the loan
To receive a portion of the loan proceeds
To guarantee repayment if the borrower defaults
To negotiate the terms of the loan
#20
Which federal agency regulates consumer credit in the United States?
Federal Reserve
Securities and Exchange Commission
Consumer Financial Protection Bureau
Department of Treasury