Chapter 4 Sections 1 and 2 Review

Transferring debt from one credit card to another to known as:

• Penalty APR
• Balance Transfer
• Credit Limit
• Over the limit fee

The cost of credit expressed as a yearly interest rate is known as:

• Annual Percentage Rate (APR)
• Annual Fee
• Penalty APR
• Introductory Rate

Examples of penalty fees include:

• over-the-limit fee
• late payment fee
• returned payment fee
• all of these

How can you avoid paying interest fees on your credit card?

• Only use it for groceries
• pay off the full balance, on time, each month
• you cannot avoid interest fees
• only use Discover

It is wise to compare credit card offers before choosing one

• True
• False

What is one advantage of having a credit card?

• It prevents you from spending more than you earn.

• It allows you to make purchases without carrying lots of cash.

• It encourages you to budget your money wisely.

• It helps you pay off debts that you may have.

What is a finance charge?

• The amount of interest charged to an account for the billing cycle. 
• A fixed annual percentage rate of the finance charge.
• A charge from the bank for getting a credit card. 
• None of the above. 

Tags

CCSS.7.RP.A.3

Only making the minimum payment on a credit card every month will:

• lower the amount total paid for the purchase
• make you independently wealthy
• take longer to pay off which will result in paying more interest, more money!
• pay off the credit card faster

Michelle Peterson’s credit card statement for the month of December showed a membership fee of $40, a late fee of $15, a finance charge of $11.72, and an over-the-limit fee of $14. What was the total cost of the card to Michelle in December?

• 78.72

• $80.72

• $79.72

• $81.72

Which of the following items can be found on a credit card statement?

• payments made and new charges
• fees and interest charged
• year to date totals and how long it will take you to pay it off w/minimum only
• all of these