Credit and Debt - High School Quiz

Question 1: Which of the following credit cards makes sense for a person that pays his balance every month?
a credit card with a 5% fixed interest rate
a credit card with 0% interest rate for the first six months
a credit card that offers 1% cash back rewards on all purchases

Question 2: Yolanda has three credit cards and she owes $500 on each of them. The interest rates are 7% for card A, 9% for card B and 8% for card C. If Yolanda has $1,000 to pay some of her debt, which cards should she pay if she wants to minimize future interest payments?
$500 to card B and $500 to card C
$500 to card B and $500 to card A
$500 to card A and $500 to card C
$333 to card A and $333 to card B and $334 to card C

Question 3: Which of the following is not typically associated with borrowing?
credit card
mortgage
debit card
auto loan

Question 4: Which of the following actions typically changes the most the credit score of a person?
A credit card account was opened
50% loss in the stock market for a particular stock
The minimum payment of a credit card was not paid for 3 months in a row

Question 5: Hillary and Stephanie have both borrowed $15,000 from the same bank to buy the same model of a new car. Hillary's credit score is 732 and Stephanie's credit score is 588. Who is likely to pay a lower finance charge?
They will pay the same because they used the same bank
Hillary
Stephanie
They will pay the same because they bought the same car

Press the Submit button to see the results.

 




Financial Literacy External Resources

The Jumpstart Coallition for Personal Finance Literacy
Personal Finance 101 from Student Aid on the Web