Tara McDonald
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High School Principles of Business Quiz on POB 5.01 Review, created by Tara McDonald on 20/02/2017.

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Tara McDonald
Created by Tara McDonald almost 8 years ago
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POB 5.01 Review

Question 1 of 16

1

Eddie moved into his own apartment and realized he barely had enough money to get by. Before long, he was in credit trouble, so who should he contact to receive information on actions to help manage his debt?

Select one of the following:

  • Loan officer

  • Credit counselor

  • Bank teller

  • Bankruptcy counselor

Explanation

Question 2 of 16

1

When Laverne applied for a loan at the bank, they saw that she had paid all her bills on time. This showed that she had good:

Select one of the following:

  • Character

  • Capital

  • Capacity

  • Collateral

Explanation

Question 3 of 16

1

Rooms to Go Furniture had a great sale and Franny bought a new bedroom suit. The store will allow her to make monthly payments. This is an example of:

Select one of the following:

  • Consumer Loans

  • Installment Credit

  • Unsecured Loan

  • Credit Card Sale

Explanation

Question 4 of 16

1

Juan started a new job and needed some new professional clothes. He shopped at Sears and was offered credit. This is an example of:

Select one of the following:

  • Consumer Loan

  • Home Loan

  • Charge Account

  • Budget Loan

Explanation

Question 5 of 16

1

A VISA card is an example of which type of credit card?

Select one of the following:

  • Bank

  • Oil Company

  • Retail Store

  • Travel and Entertainment

Explanation

Question 6 of 16

1

Mary owns several homes and has interest in opening a retail store. From this information, which “C” of credit is she most likely to meet if she wants to borrow money to open the new store?

Select one of the following:

  • Capital

  • Collateral

  • Character

  • Capacity

Explanation

Question 7 of 16

1

During the loan application process, Frank lost his job at no fault of his own. This may keep him from receiving his loan, because of lack of:

Select one of the following:

  • Capital

  • Collateral

  • Capacity

  • Character

Explanation

Question 8 of 16

1

Cost of credit refers to:

Select one of the following:

  • Saving money

  • Principal

  • Length of loan

  • Interest Paid

Explanation

Question 9 of 16

1

The formula for calculating simple interest is:

Select one of the following:

  • I = P + R + T

  • I = P / R / T

  • I = P x R x T

  • I=PR

Explanation

Question 10 of 16

1

Some people out of necessity use this to reduce debt, but it harms your credit score for at least 7-10 years:

Select one of the following:

  • Getting a new credit card

  • Getting a new loan

  • Credit Counseling

  • Bankruptcy

Explanation

Question 11 of 16

1

The bank loaned Rodney $1800, which will be paid back in 18 months at a set amount each month. This loan is for a boat. What type of loan is it?

Select one of the following:

  • Installment Sales Credit

  • Consumer Loans

  • Unsecured Loan

  • Credit Card Sale

Explanation

Question 12 of 16

1

Jack bought a TV from Best Buy on December 31, with an agreement to pay it in full in 30 days. On what day is the payment due?

Select one of the following:

  • January 1

  • January 30

  • February 31

  • December 31

Explanation

Question 13 of 16

1

What is the maturity date for a loan made on January 24 and due in 60 days?

Select one of the following:

  • March 24

  • March 25

  • March 31

  • April 1

Explanation

Question 14 of 16

1

What is the interest amount for the following loan: $10,000 car loan for 5 years at 8% interest rate?

Select one of the following:

  • $14,000

  • $3,000

  • $4,000

  • $5,000

Explanation

Question 15 of 16

1

Jenny has the option of borrowing $300 at a 3% interest rate. Which loan option would cost her the most money?

Select one of the following:

  • Option1: loan for 2 months

  • Option2: loan for 3 months

  • Option3: loan for 6 months

  • Option4: loan for 1 year

Explanation

Question 16 of 16

1

What is the total loan amount for the following loan: $25,000 car loan for 3 years at 4.25% interest rate?

Select one of the following:

  • $3,187.50

  • $26,000

  • $28,187.50

  • $31,187.50

Explanation

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