Credit Cards and Car Loans

A proprietary credit card is usually accepted by one type of store or company.

• True

• False

The average daily balance method of calculating interest is based on the opening balance of the account for the previous month.

• True

• False

The annual fee for a credit card is set by the government.

• True

• False

APR measures the interest rate charged by a credit card.

• True

• False

If someone uses your lost or stolen credit card, you are liable for no more than $50.

• True

• False

Most used cars sold by private parties have a one-year warranty.

• True

• False

A service contract is designed to avoid costly repairs as a motor vehicle gets older.

• True

• False

The Truth-in-Lending law requires that a borrower be informed of the total finance charge.

• True

• False

Bodily-injury liability covers the damage to another person’s car for which you were at fault.

• True

• False

Collision insurance covers damage caused to a motor vehicle by vandalism or floods.

• True

• False