Quiz – Smart Credit Usage

Question 1 of 6

1. Question

What does Annual Percentage Rate (APR) determine?

How much interest you pay

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Your total annual salary

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The number of cards you own

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The store’s discount rate

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Question 2 of 6

2. Question

A 20 percent APR means that for every 100 dollars borrowed annually you pay an extra:

20 dollars

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2 dollars

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100 dollars

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120 dollars

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Question 3 of 6

3. Question

Which organization developed the credit score used by lenders worldwide?

Fair Isaac Corporation

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The Federal Reserve

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The World Bank

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The Consumer Financial Protection Bureau

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Question 4 of 6

4. Question

The Consumer Financial Protection Bureau recommends maintaining:

Low balances relative to your credit limits

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Balances close to your credit limit

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As many open cards as possible

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Only minimum payments forever

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Question 5 of 6

5. Question

Match each concept to its fact.

Sort elements

The yearly percentage cost of borrowing
Developed the credit score
Keep balances low versus limits
Extend repayment and add interest

APR	Correct Incorrect Correct answer

Fair Isaac Corporation

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CFPB advice

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Minimum-only payments

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Question 6 of 6

6. Question

Which three-letter term names the yearly percentage cost of borrowing on credit?

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