EverFi Payment Types Module 3

1. Which of the following payment types require you to pay upfront?

• a. Money order
• b. Cashier's check
• c. Pre-paid card
• d. All of the above

2. Which of the following is true?

• a. Checks and Debit Cards both withdraw money directly from a bank account.
• b. Checks are the most widely accepted form of payment
• c. Debit Cards often have a higher interest rate than Credit Cards.
• d. Debit cards offer the highest level of fraud protection.

3. Which of the following statements comparing debit cards to credit cards is TRUE?

• a. Debit cards allow you to draw funds directly from your checking account.
• b. Debit cards typically offer greater fraud protection than credit cards.
• c. Debit cards never require a signature to finalize a purchase like credit cards.
• d. Debit cards charge higher interest rates on purchases than credit cards.

4. Which of the following is NOT true of credit cards?

• a. They offer the highest level of fraud protection.
• b. They are the best payment type to use when trying to stick to a budget.
• c. You can be charged a fee if you are late making a monthly payment.
• d. Some offer rewards, like cash back or airline miles.

5. Which payment method typically charges the highest interest rates?

• a. Credit cards
• b. Cashier's checks
• c. Pre-paid cards
• d. Payday loans

6. Which of the following tells you how much your credit card interest will be if you only pay the minimum balance each month?

• a. Late Fee
• b. Annual Membership Fee
• c. Balance Transfer Fee
• d. Annual Percentage Rate

7. Which payment type can help you stick to a budget?

• a. Credit cards
• b. Debit cards
• c. Payday loans
• d. Cash advances

8. Which of the follow will happen if you miss a monthly credit card payment?

• a. You will be charged a late fee
• b. You lose reward points
• c. Your APR will increase the next month
• d. Both A and B

9. If you are planning to carry a large balance on your credit card, which of the following credit card features should you look for?

• a. Low APR
• b. Low balance transfer fee
• c. Lots of credit card rewards
• d. A large credit limit

10. What is a credit limit?

• a. The required payment to your credit card company.
• b. The amount of interest you are charged each month.
• c. The maximum amount you can charge each billing cycle.
• d. How many credit cards you can own.