Question 1

What impacts your credit score?

Accepted Answer

A)  Race. 
B)  Marital status. 
C)  Payment history. 
D)  Nationality.

Question 2

What represents the total amount of credit lines available compared to how much is used?

Accepted Answer

A)  Credit usage ratio. 
B)  Debt-to-income ratio. 
C)  Debt-to-asset ratio. 
D)  Liquidity ratio.

Question 3

How quickly you can access cash is referred to as

Accepted Answer

A)  liquidity. 
B)  insurance. 
C)  overdraft. 
D)  reconciliation.

Question 4

How will having a credit score of 400 affect your application for new credit?

Accepted Answer

A)  You will likely be approved for new credit. 
B)  You will likely be rejected for new credit. 
C)  It will not affect your application. 
D)  You will likely be approved but charged a high interest rate.

Question 5

Which event can have a negative effect on your credit report?

Accepted Answer

A)  Owning stock in a company that declares bankruptcy. 
B)  Taking out a student loan. 
C)  Losing a home to foreclosure. 
D)  All of these answer choices are correct.

Question 6

Having a credit score around 500 means you have a ________ risk of having a new credit application rejected.

Accepted Answer

A)  low 
B)  moderate 
C)  high 
D)  The answer depends on how the credit score was calculated.

Question 7

Which of the following is generally required when you write a check?

Accepted Answer

A)  The name of the person or company that will get the money. 
B)  The date. 
C)  The amount to be paid. 
D)  All of these answer choices are correct.

Question 8

Maarku lost his debit card. He reported it immediately before any unauthorized withdrawals were made. How much is Maarku responsible for?

Accepted Answer

A)  $0. 
B)  $50. 
C)  $500. 
D)  $600.

Question 9

A finance charge represents that total amount of what elements?

Accepted Answer

A)  Interest and principal. 
B)  Fees and principal. 
C)  Interest and fees. 
D)  Interest, fees, and principal.

Question 10

Amar owes $2,000 on his credit card with a minimum percentage of 4% or a minimum payment of $60, whichever is higher. How much is the minimum payment due?

Accepted Answer

A)  $60. 
B)  $80. 
C)  $140. 
D)  $2,000.

Question 11

How are most goods and services purchased and money transfers done today?

Accepted Answer

A)  Electronic transactions. 
B)  Coins. 
C)  Traditional checks. 
D)  Cash.

Question 12

A loan consists of what elements?

Accepted Answer

A)  Principal. 
B)  Interest. 
C)  Loan fees. 
D)  All of these answer choices are correct.

Question 13

It's November and Mia's credit card has a balance of $7,500. The minimum payment due is $300. The APR is 23%. If she pays only the minimum payment this month, how much of the payment will go toward principal?

Accepted Answer

A)  $141.75. 
B)  $146.85. 
C)  $158.25. 
D)  $161.65.

Question 14

Mohammed had $750 in his checking account when his debit card was stolen. Assuming the thief made $525 in purchases with the card, how much could Mohammed save by reporting the stolen ATM card within 2 business days rather than waiting more than 2 business days (but less than 60 days) before reporting the theft?

Accepted Answer

A)  $50. 
B)  $525. 
C)  $475. 
D)  $500.

Question 15

If you have no credit card and want to get a credit card, you could

Accepted Answer

A)  apply for a rewards credit card. 
B)  ask your bank to convert your debit card into a credit card. 
C)  have a co-signer for the credit card account. 
D)  None of these answer choices are correct.

Question 16

What provides a summary of a person's credit risk?

Accepted Answer

A)  Credit score. 
B)  Leasing history. 
C)  Credit application. 
D)  Credit history.

Question 17

How will having a credit score of 775 impact your application for new credit?

Accepted Answer

A)  You will likely be approved for new credit. 
B)  You will likely be rejected for new credit. 
C)  It will not affect your application. 
D)  You will likely be approved and receive the best borrowing terms.

Question 18

What is the range for FICO scores?

Accepted Answer

A)  200−600. 
B)  250−650. 
C)  300−750. 
D)  300−850.

Question 19

On January 1, Pablo borrows $5,000 with a fixed interest rate on the loan of 10% and a loan term of 2 years. He will be making monthly payments of $230.72. How much of Pablo's fifth loan payment would be interest charged?

Accepted Answer

A)  $38.50. 
B)  $36.90. 
C)  $35.29. 
D)  $33.36.

Question 20

The following is an example of what type of endorsement? For Deposit Only (1357902468) Oconee City Bank Mary Timberly

Accepted Answer

A)  Blank endorsement. 
B)  Special endorsement. 
C)  Restricted endorsement. 
D)  Deposit endorsement.

Exam 5: Checking Accounts, Credit Scores, and Credit Cards