Credit Management and Financial Literacy Quiz
Test your knowledge on credit management with questions about APR, credit score factors, debt-to-income ratio, and more!
#1
What does APR stand for in the context of credit management?
Annual Payment Rate
Annual Percentage Rate
Adjusted Principal Ratio
Average Payment Return
#2
Which of the following is not a factor affecting credit score?
Payment history
Length of credit history
Ethnicity
Credit utilization
#3
What does the term 'delinquency' refer to in credit management?
The process of obtaining credit
A type of loan
Failure to make payments on time
The interest rate charged on credit cards
#4
What is the primary purpose of a credit report?
To track personal expenses
To assess creditworthiness
To determine loan interest rates
To calculate tax deductions
#5
What is the purpose of a credit limit?
To determine the interest rate on a loan
To limit the amount of credit available to a borrower
To set the duration of a loan
To determine the type of credit card
#6
What is the purpose of a debt-to-income ratio (DTI)?
To assess an individual's ability to pay off debts
To calculate the interest on loans
To determine the credit limit
To evaluate the profit margin
#7
Which of the following statements about secured loans is true?
Secured loans require no collateral
Secured loans typically have higher interest rates
Secured loans are less risky for lenders
Secured loans are usually for small amounts
#8
What does the term 'credit utilization ratio' refer to?
The amount of available credit being used
The interest rate charged on credit cards
The duration of a loan
The process of obtaining credit
#9
Which of the following is NOT a credit reporting agency in the United States?
TransUnion
Experian
Equifax
Standard & Poor's
#10
What is the purpose of a FICO score?
To determine a borrower's credit risk
To set the interest rate for loans
To calculate the amount of available credit
To assess the length of credit history
#11
What is a 'charge-off' in the context of credit management?
A type of credit card
A legal document
A debt declared unlikely to be collected
An additional fee for late payments
#12
What is the significance of the 'grace period' on a credit card?
It is the time allowed to report a lost card
It is the period after the due date during which no interest is charged
It is the limit on how much can be charged to the card
It is the maximum time to repay the entire balance without incurring interest
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