#1
Which of the following is a factor that affects your credit score?
Length of credit history
Favorite color
Height in feet
Number of pets
#2
What is the recommended debt-to-income ratio for good financial health?
#3
What is the grace period on a credit card?
The time during which you can earn rewards points
The time before interest begins to accrue on new purchases
The time after the due date when a payment is still considered on time
The time during which you cannot use your credit card
#4
Which of the following is a disadvantage of using credit cards?
Convenience
Building credit history
Risk of overspending and accumulating debt
Cashback rewards
#5
Which of the following is a characteristic of a good credit score?
Low credit utilization ratio
Maxing out credit cards frequently
Late payments on bills
Opening many new credit accounts quickly
#6
What does it mean to 'default' on a loan?
To repay the loan on time
To delay the loan repayment for a short period
To fail to repay the loan as agreed
To pay more than the minimum required amount
#7
Which of the following factors does NOT typically affect your credit score?
Income level
Payment history
Length of credit history
Types of credit used
#8
Which of the following statements best describes the concept of 'debt consolidation'?
Taking on more debt to pay off existing debts
Combining multiple debts into a single, manageable loan
Ignoring debts until they go away
Paying off debts using credit cards
#9
What is the 'snowball method' in debt repayment?
Paying off debts starting with the smallest balance first
Paying off debts starting with the largest balance first
Paying off debts randomly
Not paying off debts at all
#10
What does APR stand for in the context of credit cards?
Annual Payment Ratio
Average Payment Requirement
Annual Percentage Rate
Average Percentage Requirement
#11
Which of the following is NOT a credit reporting agency?
TransUnion
Experian
Equifax
Federal Reserve
#12
Which of the following is NOT a type of credit card?
Secured credit card
Prepaid credit card
Rewards credit card
Debit card
#13
What is the significance of the 'minimum payment' on a credit card statement?
It's the maximum amount you should pay
It's the minimum amount you must pay to avoid late fees
It's the recommended amount to improve your credit score
It's the amount to be paid only if you have extra funds
#14
What does it mean if a debt is 'charged off'?
The debt is forgiven and no longer needs to be repaid
The debt is sold to a debt collection agency
The lender writes off the debt as unlikely to be collected
The debt is transferred to another person
#15
What is the difference between secured and unsecured debt?
Secured debt is guaranteed by collateral, while unsecured debt is not
Secured debt is always higher in interest rate
Unsecured debt requires a cosigner, while secured debt does not
There is no difference between secured and unsecured debt
#16
What is the Debt-to-Equity ratio?
Ratio of total debt to total assets
Ratio of total debt to total equity
Ratio of total equity to total assets
Ratio of total assets to total equity
#17
What does it mean to 'charge off' a debt?
To pay off the entire debt at once
To transfer the debt to another account
To cancel the debt as uncollectible
To increase the interest rate on the debt
#18
Which of the following is NOT a type of bankruptcy?
Chapter 7
Chapter 11
Chapter 13
Chapter 20
#19
What is the purpose of a credit utilization ratio?
To calculate your monthly debt payments
To measure how much of your available credit you're using
To determine your credit score
To assess the interest rate on your loans