Personal Finance EF Module 3

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

• Money order

• Cashier's check

• Pre-paid card

• All of the above

Which of the following is true?

• Checks and Debit Cards both withdraw money directly from a bank account.

• Checks are the most widely accepted form of payment

• Debit Cards often have a higher interest rate than Credit Cards.

• Debit cards offer the highest level of fraud protection.

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

• Debit cards allow you to draw funds directly from your checking account.

• Debit cards typically offer greater fraud protection than credit cards.

• Debit cards never require a signature to finalize a purchase like credit cards.

• Debit cards charge higher interest rates on purchases than credit cards.

Which of the following is NOT true of credit cards?

• They offer the highest level of fraud protection.

• They are the best payment type to use when trying to stick to a budget.

• You can be charged a fee if you are late making a monthly payment.

• Some offer rewards, like cash back or airline miles.

Which payment method typically charges the highest interest rates?

• Credit cards

• Cashier's checks

• Pre-paid cards

• Payday loans

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

• Late Fee

• Annual Membership Fee

• Balance Transfer Fee

• Annual Percentage Rate

Which payment type can help you stick to a budget?

• Credit cards

• Debit cards

• Payday loans

• Cash advances

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

• You will be charged a late fee

• You lose reward points

• Your APR will increase the next month

• Both A and B

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

• Low APR

• Low balance transfer fee

• Lots of credit card rewards

• A large credit limit

What is a credit limit?

• The required payment to your credit card company

• The amount of interest you are charged each month.

• The maximum amount you can charge each billing cycle.

• How many credit cards you can own.