AnswersPersonal FinanceManaging Credit and Debit

Practice Test Answers

10 verified answers
2
Free Preview

Which is considered a good credit practice?

A
Borrow more than one can afford to repay.
B
Use the credit card with the highest interest rate.
C
Make late payments.
D
Pay more than the minimum amount that is due.
3

Jessica is trying to get a credit card. She has a credit score of 790. How is Jessica’s lender likely to view this credit score?

A
Jessica is low risk but will not pay her outstanding balances on time.
B
Jessica is low risk and will pay her outstanding balances on time.
C
Jessica is high risk but will not pay her outstanding balances on time.
D
Jessica is high risk and will pay her outstanding balances on time.
4

Companies report people to credit agencies if they

A
borrow too much money.
B
use large amounts of credit at once.
C
fail to pay their bills on time.
D
fail to use different types of credit.
6

Which describes the difference between a personal loan and a credit card?

A
Credit cards are secured loans for large amounts, while personal loans are unsecured for small purchases.
B
Personal loans are secured for small purchases, while credit cards are unsecured loans for large amounts.
C
Credit cards offer lump sums of money, while personal loans set a maximum amount a person can borrow.
D
Personal loans offer lump sums of money, while credit cards set a maximum amount a person can borrow.
8

A down payment is usually what percentage of the asking price of a home?

A
50–75 percent
B
20–50 percent
C
5–20 percent
D
0–5 percent
10

A mortgage is a legal agreement between a borrower and a

A
family court judge.
B
wealthy relative.
C
city agency.
D
bank.

Did you find these answers helpful?