H&R Block Challenge Test Questions
And Answers With Verified Solutions
100% Correct!!!
Interest Rate
Answer: The amount you pay or earn for borrowing or loaning money.
Compound Interest
Answer: Interest on interest; basically, interest plus time equals interest on
your interest, which leads to increasing amounts of money.
NSF Fee
Answer: Charged by the bank because you do not have enough money to
cover the check or charge.
Returned Check Fee
Answer: Charged by the person or company you wrote the check for
because you did not have sufficient funds to cover the check.
Overdraft Protection
Answer: A feature you can get on a bank checking account that links your
checking account to your credit card or savings account. If your check or
charge bounces, the bank will charge you a small fee and use your credit
card or savings account to cover the check/charge.
Credit Utilization
Answer: The percentage of your credit you are using.
, Credit Utilization Percent
Answer: The total amount you owe divided by the total amount of your
credit.
Which two factors determine 70% of your credit rating?
Answer: Credit card utilization percentage and your payment history.
What is a credit report?
Answer: A report showing how much you owe, how much credit you have,
a 7-year history of your payments, any loans you have, and any unpaid taxes
or legal actions (tax liens, bankruptcy).
Who is responsible for checking the accuracy of your credit report?
Answer: You.
How long does negative information remain on your credit record?
Answer: 7 years.
What sort of jobs might not hire you if you have a poor credit rating and
why?
Answer: Jobs in the financial industry because they fear you will commit
fraud, and jobs in government or law enforcement because they fear you
may be susceptible to bribery or leaking information.
How does your credit score affect your costs and interest rate for borrowing?
Answer: The higher your credit score, the lower your borrowing costs and
interest rates. The lower your credit score, the higher your costs.
And Answers With Verified Solutions
100% Correct!!!
Interest Rate
Answer: The amount you pay or earn for borrowing or loaning money.
Compound Interest
Answer: Interest on interest; basically, interest plus time equals interest on
your interest, which leads to increasing amounts of money.
NSF Fee
Answer: Charged by the bank because you do not have enough money to
cover the check or charge.
Returned Check Fee
Answer: Charged by the person or company you wrote the check for
because you did not have sufficient funds to cover the check.
Overdraft Protection
Answer: A feature you can get on a bank checking account that links your
checking account to your credit card or savings account. If your check or
charge bounces, the bank will charge you a small fee and use your credit
card or savings account to cover the check/charge.
Credit Utilization
Answer: The percentage of your credit you are using.
, Credit Utilization Percent
Answer: The total amount you owe divided by the total amount of your
credit.
Which two factors determine 70% of your credit rating?
Answer: Credit card utilization percentage and your payment history.
What is a credit report?
Answer: A report showing how much you owe, how much credit you have,
a 7-year history of your payments, any loans you have, and any unpaid taxes
or legal actions (tax liens, bankruptcy).
Who is responsible for checking the accuracy of your credit report?
Answer: You.
How long does negative information remain on your credit record?
Answer: 7 years.
What sort of jobs might not hire you if you have a poor credit rating and
why?
Answer: Jobs in the financial industry because they fear you will commit
fraud, and jobs in government or law enforcement because they fear you
may be susceptible to bribery or leaking information.
How does your credit score affect your costs and interest rate for borrowing?
Answer: The higher your credit score, the lower your borrowing costs and
interest rates. The lower your credit score, the higher your costs.
