Financial Literacy Quiz Lecture 6

Test your knowledge on personal finance topics such as debt, credit scores, loans, and financial management. Challenge yourself with questions related to loan amortization, FICO scores, debt consolidation, and more.

Flashcards15 cardsFPractice quizPHost liveL

Questions 15

Answers

1
What is the negative side of alternative financial services?
Lower interest rates
Higher interest rates
Easier access to credit
No fees
2
What is the purpose of checking your credit score?
To monitor financial health
To apply for loans
To lower interest rates
To avoid hard inquiries
3
What is the risk of opening many credit accounts quickly?
Less debt
More credit options
Higher credit score
Lower credit score
4
What should you prioritize when paying off debt?
Lowest balance first
Highest interest first
Oldest debt first
All debts equally
5
How long to pay off $10,000 at 23% with $250/month?
30 months
50 months
100 months
76.6 months
6
What is credit utilization?
Length of credit history
Number of accounts
Percentage of credit used
Total debt amount
7
What is a FICO score?
A bank account
A debt amount
A loan type
A financial GPA
8
How long can bankruptcy stay on your report?
7 years
10 years
15 years
5 years
9
What is a debt consolidation loan?
A loan for emergencies
A loan with higher rates
A loan for new purchases
A loan to simplify payments
10
What happens to interest as loan balance decreases?
It stays the same
It decreases
It increases
It doubles
11
What is a secured credit card?
A card for rewards
A card with no fees
A card for emergencies
A card backed by savings
12
What is the impact of good credit?
Higher interest rates
More debt
Less savings
Lower interest rates
13
What does payment history affect?
Credit mix
Length of credit
Credit score
Loan amount
14
What is loan amortization?
Gradual loan repayment
One-time payment
Paying principal only
Paying interest only
15
What is a payday loan?
Short-term high-interest loan
Interest-free loan
Loan for investments
Long-term loan

Financial Literacy Quiz Lecture 6 Flashcards | StudBud

Financial Literacy Quiz Lecture 6

15 termsStudBud Administration16 plays

Flashcards15 cardsFPractice quizPHost liveL

Questions 15

Answers

1
What is the negative side of alternative financial services?
Lower interest rates
Higher interest rates
Easier access to credit
No fees
2
What is the purpose of checking your credit score?
To monitor financial health
To apply for loans
To lower interest rates
To avoid hard inquiries
3
What is the risk of opening many credit accounts quickly?
Less debt
More credit options
Higher credit score
Lower credit score
4
What should you prioritize when paying off debt?
Lowest balance first
Highest interest first
Oldest debt first
All debts equally
5
How long to pay off $10,000 at 23% with $250/month?
30 months
50 months
100 months
76.6 months
6
What is credit utilization?
Length of credit history
Number of accounts
Percentage of credit used
Total debt amount
7
What is a FICO score?
A bank account
A debt amount
A loan type
A financial GPA
8
How long can bankruptcy stay on your report?
7 years
10 years
15 years
5 years
9
What is a debt consolidation loan?
A loan for emergencies
A loan with higher rates
A loan for new purchases
A loan to simplify payments
10
What happens to interest as loan balance decreases?
It stays the same
It decreases
It increases
It doubles
11
What is a secured credit card?
A card for rewards
A card with no fees
A card for emergencies
A card backed by savings
12
What is the impact of good credit?
Higher interest rates
More debt
Less savings
Lower interest rates
13
What does payment history affect?
Credit mix
Length of credit
Credit score
Loan amount
14
What is loan amortization?
Gradual loan repayment
One-time payment
Paying principal only
Paying interest only
15
What is a payday loan?
Short-term high-interest loan
Interest-free loan
Loan for investments
Long-term loan