Credit/Debt

_________ is the addition of interest to the principal sum of a loan or deposit.

• Simple Interest

• Compounding Interest

• Interest

• Returns

________ is when a credit card company offer a 0% interest rate to new customers.

• teaser rate

• introductionary rate

• bonus rate

• all of the answers

Which of the following best describes grace period?

• The period of time before you are charged interest

• The period of time after you are charged interest

• The amount of money that can be charged

• None of the answers

When you use the _______ debt payment strategy you focus on the highest interest loans first.

• Low Interest

• High Debt

• Snowball

• High Interest

When you use _____ debt payment strategy you focus on the smallest total loan amount to get the progress started.

• High Interest

• Snowball

• Low Interest

• Snow Cone

_______ loans can charge anywhere from 34-300% interest.

• Simple

• Revolving

• Unsecured

• Payday

True or False. A payday loan is considered a secured loan.

• True

• False

True or False. A credit card is considered a secured loan.

• False

• True

________ is a plastic card that you can use to access a line of credit.

• debit card

• credit card

• atm card

• all of the above

If you go over your ______ you will be charged extra fees and possibly more interest.

• Cash limit

• Debt limit

• Amount limit

• Credit limit