What is the purpose of the Truth in Lending disclosure?

To inform borrowers about loan costs

Which of the following is a peer-to-peer lending platform most likely to offer?

Loans funded by individual investors

Which of the following is a debt repayment strategy?

Creating a budget and paying more than the minimum

If a person has a high capacity to repay loans, how might this affect their credit rating?

It will likely improve their credit rating

It will lower their credit rating

It will freeze their credit rating

A person is considering a peer-to-peer loan and a bank loan. What is one potential advantage of peer-to-peer lending?

Potentially lower interest rates

Why is it important to address errors found on your credit report?

To ensure your credit score is accurate

If someone uses a credit card and only pays the minimum payment each month, what is a likely consequence?

Interest charges will accumulate

Credit score will increase rapidly

How can divorce impact an individual's financial situation regarding credit and debt?

It can lead to increased debt and lower credit scores

What is one way to determine if a loan offer is predatory?

The loan has extremely high interest rates and hidden fees

The lender requires a credit check

If you want to improve your credit score, which action should you take?

Apply for multiple payday loans

Compare collateralized loans and unsecured credit. Which typically has a lower interest rate and why?

Collateralized loans, because the lender has security

Unsecured credit, because it is riskier

Why might someone choose to use credit even if they have cash available?

To take advantage of rewards or build credit

To avoid building credit history

How does starting to save and invest early benefit an individual financially?

It allows for exponential growth of wealth over time

It reduces the need for a budget

It guarantees no financial risk

If you notice an error on your credit report, what is the first step you should take?

Report the error to the credit bureau

Which of the following best describes the difference between revolving and installment credit?

Revolving credit allows repeated borrowing up to a limit; installment credit is repaid in fixed payments

Installment credit has no repayment schedule

Revolving credit requires collateral

Installment credit is only for businesses

When considering a loan, why is it important to review the Truth in Lending disclosure?

To understand the total cost and terms of the loan

What is a potential risk of only making the minimum payment on a credit card each month?

Accumulation of interest charges

Which action can negatively impact your credit score?

Maintaining a low credit utilization ratio

What is one advantage of having a high credit score?

Better loan terms and lower interest rates

More frequent credit report errors

What is the definition of "interest" when it comes to loans and savings?

The percentage of a loan amount charged as a fee over time

The amount of money you owe on a loan

The money you earn on savings over time

The initial amount of money borrowed

What is the "minimum payment" on a credit card?

The smallest amount of money you must repay to the credit card company each month

The smallest amount of money you can spend

The largest amount of money you can spend

The total amount of money you owe on the card

What is a "mortgage"?

A loan used to purchase real estate

What does "net income" refer to?

The total amount of money earned after taxes and deductions

The total amount of money earned before taxes and deductions

The total amount of money spent

The total amount you earn before any deductions.

The amount you earn after taxes and deductions.

The amount you receive after sales tax is applied.

The total amount of taxes you owe at the end of the year.

What is the purpose of sales tax?

To fund specific government projects and services.

To reduce the income tax burden on individuals.

To encourage saving and reduce spending.

To directly tax property ownership.

What does it mean to have debt?

You owe money to someone or a company

You have a lot of money in your wallet

What can you do to avoid debt?

Only use money that you have, instead of borrowing

Use all your savings to buy expensive things

Borrow money from many different people

Income from all sources before deductions such as retirement, health insurance, federal, state, and local taxes, etc

Income after all deductions have been paid

I don't know i just want pizza and wings

Final Review #3

Authored by James Cherry

Social Studies

12th Grade

Used 10+ times

AI Actions

Add similar questions

Adjust reading levels

Convert to real-world scenario

Translate activity

More...

Content View

Student View

55 questions

Show all answers

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is an example of a source of credit?

Grocery store

Bank

Utility company

Insurance agency

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a key characteristic of payday loans?

Low interest rates

Long repayment periods

Short-term, high-interest borrowing

Requires collateral

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is considered a predatory lending practice?

Offering low interest rates

Charging excessive fees and interest

Providing financial education

Requiring a co-signer

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does a credit score primarily measure?

Income level

Creditworthiness

Age

Education level

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is an example of revolving credit?

Car loan

Mortgage

Credit card

Student loan

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which factor is NOT part of the "Three Cs" of credit?

Character

Capacity

Collateral

Citizenship

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How can you access your credit report?

By asking your employer

Through a credit bureau

By visiting a bank branch

By calling your insurance company

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Continue with Google

Continue with Email

Continue with Microsoft

or continue with

Facebook

Apple

Others

Already have an account?

Similar Resources on Wayground

50 questions

U.S. B: Final Exam Review

Quiz

•

9th - 12th Grade

51 questions

Semester 1 Geography Practice

Quiz

•

7th Grade - University

50 questions

Economics Final Exam Review

Quiz

•

12th Grade

50 questions

Elobest General Knowledge quiz

Quiz

•

8th Grade - Professio...

54 questions

AP Human Geo Unit 4: Political Patterns & Processes

Quiz

•

9th - 12th Grade

56 questions

General Psychology Ch. 1&2 History and Approaches Quizizz

Quiz

•

11th - 12th Grade

50 questions

Guess the State Capital!

Quiz

•

5th - 12th Grade

57 questions

The US Citizenship Exam Part 1, 2, & 3 (For Arkansas)

Quiz

•

10th - 12th Grade

Popular Resources on Wayground

24 questions

PBIS-HGMS Day 10

Quiz

•

6th - 8th Grade

10 questions

HCS SCI 03 Summer School Review 3

Quiz

•

3rd Grade

11 questions

Home Scope

Quiz

•

7th - 8th Grade

15 questions

HCS SCI 05 Summer School Assessment 3 Review

Quiz

•

5th Grade

35 questions

Lufkin Road Middle School Student Handbook & Policies Assessment

Quiz

•

7th Grade

18 questions

Geo 11.3 Area of Circles and Sectors

Quiz

•

9th - 11th Grade

Final Review #3

Which of the following is an example of a source of credit?

What is a key characteristic of payday loans?

Which of the following is considered a predatory lending practice?

What does a credit score primarily measure?

Which of the following is an example of revolving credit?

Which factor is NOT part of the "Three Cs" of credit?

How can you access your credit report?

Which of the following is a benefit of monitoring your credit report regularly?

Which personal event could lead to bankruptcy?

What is the purpose of the Truth in Lending disclosure?

Access all questions and much more by creating a free account

Similar Resources on Wayground

Popular Resources on Wayground