Home > Basics > Beginner
Basics Beginner: Credit

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
The Truth in Lending Law requires that a lender disclose _______.
Choose wisely. There is only one correct answer.
Both finances charges and APR. The cost of credit must be disclosed in two ways, as finance charges and Annual Percentage Rate (APR).
2.
Credit abuses increase the cost of credit to _______.
Choose wisely. There is only one correct answer.
All of the above. Credit abuse increases the cost of credit to everyone.
3.
Having no credit profile can result in you being denied credit.
Choose wisely. There is only one correct answer.
True. Creditors like to know that you have a history of using credit.
4.
Opening several new credit accounts in a short period of time can result in an improved credit score.
Choose wisely. There is only one correct answer.
False. Opening several new credit accounts in a short period of time can result in a lowered credit score.
5.
Under the Fair Credit Reporting Act, you can be exempted from direct mail solicitations that are based on lists obtained from credit bureaus.
Choose wisely. There is only one correct answer.
True. You have the right to not be included in them.
6.
The "principal" of a loan refers to the _______.
Choose wisely. There is only one correct answer.
Original amount borrowed. The principal is the original amount borrowed.
7.
In the language of credit, capital refers to assets that can be used as collateral.
Choose wisely. There is only one correct answer.
True. Your creditors will want to know that you have capital; it makes you look less risky.