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Are You Financially Literate? Chapter 7 Quiz
1. T F Credit is a product you can shop for and compare prices. 2. Which of the following is NOT true? a. Credit and debt were first used in the early 20th century b. Student loans, car loans and payday loans are all forms of credit c. Interest is a fee paid by the borrower for use of the money d. Credit bureaus track repayment of debts 3. Which of the following is a form of non-consumer credit? a. credit card b. small business loan c. car loan d. payday loan 4. Tyler makes $2600 per month. His credit card payments are $400 per month. His car loan payment is $250, his student loan payment is $200. He also pays $110 per month to a finance company for a ring he bought his girlfriend. What’s his debt-to-income ratio? PRODUCT PREVIEW a. 37% b. 25% c. 16% d. 82% 5. Which of the following is a popular tool of consumer credit? a. loans for college education b. loans for purchasing a car c. loans for buying a home d. credit card 6. Which of the following will negatively impact an individual’s credit score? a. changing jobs b. medical problems c. regular debt payments d. missing or late loan payments 7. What is the difference between FICO® and FICA? Think back to Unit 1! _ ____________________________________________________________________ _ ____________________________________________________________________
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THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY 131
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