Money Matters Credit Quiz

An account in which the buyer pays according to a set schedule of payments is

• cash loan

• credit rating

• installment account

• revolving charge account

The actual rate of interest charged on a yearly basis is

• interest

• annual percentage rate

• finance charges

• collateral

The total amount a borrower must pay for the use of credit

• finance charges

• credit agreement

• installment account

• cash loan

Benefits of credit cards include:

• safe and convenient, bonuses are offered

• allows you to build a positive credit report

• needed for reservations and online shopping

• all of these

Benefits of credit cards include:

• safe and convenient, bonuses are offered

• allows you to build a positive credit report

• needed for reservations and online shopping

• all of these

Which one is considered a danger of using a credit card

• no cash needed

• leads to overspending

• convenient

• earns rewards

Which one is considered a danger of using a credit card

• no cash needed

• leads to overspending

• convenient

• earns rewards

What is credit?

• Free money
• Borrowed money
• Standard of living
• A term that causes tears

The amount charged if your payment is received after the billing due date.

• late payment fee

• use fee

• interest fee

• loser fee

Over time, people who pay off their credit card balance in full every month will pay less in interest on their credit card.

• true
• false