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.
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.
2.
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.
3.
Which of the following is the largest determiner of your FICO score?
Choose wisely. There is only one correct answer.
Payment history. Your payment history carries more weight than any other measure.
4.
An example of revolving credit is a(n) _______.
Choose wisely. There is only one correct answer.
Credit card agreement. Credit card agreements are an example of revolving credit.
5.
Which law gives a consumer the right to have a credit report item dispute resolved within 30 days?
Choose wisely. There is only one correct answer.
Fair Credit Reporting Act. The FCRA gives consumers the right to have disputed information investigated and reported back to them within 30 days.
6.
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).
7.
Your credit score is determined by using _______.
Choose wisely. There is only one correct answer.
A mathematical model. This mathematical model calculates your credit risk based on several factors.