Froggy Jumps Budget, Banking, and Credit Review-5thOnline version Budget, Banking, and Credit Review by Kimberly Wilson 1 How many months of expenses should you have saved? a 3 to 6 b 1 to 3 c 6 to 9 2 How much money should you have saved in your emergency savings? a $100 b $1,000 c $500 3 What percentage of your paycheck should you put into your savings account? a 1% or 3% b 10% or 20% c 5% or 9% 4 What is the definition of a credit card? a A government-issued financial aid b A type of insurance policy c A form of borrowing money with interest 5 Your credit score is an excellent measurement of how much money you have saved up. a FALSE b TRUE c NEITHER 6 The interest paid on a loan is... a The original amount borrowed b The original amount borrowed plus a fee c Price you pay to borrow money 7 The amount you pay on insurance is called? a payment b premium c deductible 8 Which statement best describes a secured loan? a A loan where interest rates never change b A loan with no collateral required c A loan backed by collateral such as a car or house 9 The largest portion of your credit score reflects your payment history, so what is one of the worst things you could do to negatively affect it? a miss a payment on a loan b pay off all your credit cards every month c borrow less money 10 Which of the following is good advice when it comes to maintaining a good credit score? a Borrow as much as possible and then declare bankruptcy b Borrow as little as possible and pay it back on time c Borrow as little as possible and pay it back whenever you feel like it 11 What form of financial exchange involves directly transferring money from one bank account to another? a Debit card b Electronic transfer c Mobile payment application 12 What is a characteristic of revolving credit? a One-time loan b Fixed amount borrowed c Flexible spending limits 13 Which of the following would be considered a good credit-to-debt ratio to help your credit score? a 25% b 50% c 75% 14 The ability to pay back money borrowed is... a Loan b Principal c Credit 15 Which form of financial exchange provides a convenient way to make purchases without carrying physical currency? a Check b Debit card c Cash 16 What does "FICO" stand for? a Free Information Corporation b Federal Insurance Corporation c Fair, Isaac and Company 17 What makes up the biggest factor of credit score? a Payment History b Amounts Owed c Length of Credit 18 What is a common form of financial exchange that allows individuals to send money to others using their smartphone? a Mobile payment application b Debit card c Check 19 What is the benefit of having a high credit score? a Banks will lend you money for free. b Banks will actually pay you to borrow money from them. c Banks will give you "better terms" (i.e. low interest rates) when you borrow money from them 20 Which of the following is a good strategy for increasing your credit history? a Get a credit card early in life, but use it very sparingly and pay it off every month. b Never apply for a credit score c Wait until you are 40 years old before using a credit card 21 What type of interest rate can change throughout the loan term? a Fixed rate b Variable Rate c Standard rate 22 What type of loan needs collateral? a Secured Loan b Unsecured Loan c Favor Loan 23 Which of the following would NOT be considered a main type of credit? a taxable b installment c revolving 24 Which one of these items is NOT considered collateral? a Investments b Automobiles c Clothing 25 Having your credit score checked many times could negatively affect it. a TRUE b FALSE c IDK 26 The amount of money you are borrowing is called... a Loan b Interest c Principal 27 Can a bad credit score affect your ability to own a house or start a business? a YES b NO c MAYBE 28 The law requires the three credit score companies to provide you with a FREE credit score each year. a FALSE b TRUE c IDK
New game