A Business Education- Finance Test Quiz!

8 Questions | By Erickipp | Updated: Mar 22, 2022 | Attempts: 655

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This quiz covers questions regarding finance and the topic of credit. Questions will include multiple-choice, fill in the blank, and essay questions.

Questions and Answers

1.

What is credit limit?
- A.
  
  It is the amount spent each month on your credit card.
- B.
  
  It is the total amount of credit issued to the user determined by the credit card company.
- C.
  
  The limit that the credit card user allows themselves to spend.
- D.
  
  The limit of places that take credit cards.
2.

Credit card issuers determine your worthiness to have their card by your ________.
3.

List and define the 5 C's of credit.
4.

How can you build a good credit history?
- A.
  
  Buy as much as you can on your credit card each month.
- B.
  
  Open a checking and savings account.
- C.
  
  Pay your bills on time consistently.
- D.
  
  Get as many credit cards as you can.
5.

What should you do if you're having trouble paying your credit card bills?
- A.
  
  Use another card to pay them off.
- B.
  
  Work with your creditors to determine how to best repay your obligations.
- C.
  
  Borrow money from family or friends.
- D.
  
  All of the above.
6.

High loan capital means the business is likely to suffer during times of rising interest rates.
- A.
  
  True
- B.
  
  False
7.

If interest rates in an economy increase, dividend payments to shareholders will also have to increase.
- A.
  
  True
- B.
  
  False
8.

Initial public offering is not a source of finance for an ordinary partnership.
- A.
  
  True
- B.
  
  False