EVERFI MODULE 5 "CREDIT AND DEBT"

What is debt?

• A debit card

• Money that you earn

• Money owed

• A loan that you don't have to pay back

Credit cards are a form of ____________

• a loan

• consumer credit

• stocks

• bonds

Which of the following is NOT a main credit card brand?

• Macys

• American Express

• Visa

• Discover

TRUE or FALSE

Mortgage loans can only be used to buy a home.

• True

• False

TRUE or FALSE

Bad credit can prevent you from getting a job.

• True

• False

What is introductory interest?

• interest on all purchases for an indefinite period of time

• interest only if you take a cash advance

• interest for the first purchase on your new credit card

• special interest rate given to customers for a limited amount of time

Some fees associated with credit cards are:

• late fees

• over-limit fees

• annual fees

• all of the above

Which of the following is considered good debt?

• You take out a loan to buy a car to get to work

• You get a credit card to buy a 60 inch tv to place in your room at your parents house

• You take out a loan to go on vacation with your friends

• You take out a loan to pay off a credit card because you cannot make payments

Which of the following will put you on the road to financial freedom?

• accumulate as many credit cards as possible

• pay only the minimum due on your credit cards

• don't start saving until you have bought everything you want

• invest wisely

TRUE or FALSE

Through education and careful research, you can use credit as an instrument to help you achieve your financial goals.

• True

• False