Comprehensive Revision"2 & 3"

A car loan is an example of :

• Fixed and close end credit

• Revolving and open end credit

• Fixed and open end credit

• Revolving and close end credit

The fee charged if you make a purchase that is more than your credit limit is:

• Annual fee

• Over-the-limit fee

• Cash advance

• Late-payment fee

The simple interest formula is:

• P + I + T

• P - I -T

• P * I * T

• P - I + T

The compound interest equation is

• CA/P

• CA-P

• CA*P

• CA+P

All of the following are examples of unsecured debt EXCEPT:

• Personal Loan

• Master card

• Visa card

• Car loan

Ali invested BD 5,000 in a bank with a rate of 4%. calculate the simple interest and amount that Ali would earn after 3 years.

• SI= BD 600 and A=BD 5600

• SI=BD 800 and A=BD 7800

• SI=BD 900 and A=BD 9000

• SI=BD 1000 and A=BD 9500

All of the following are ways to protect your Visa Card from fraud EXCEPT:

• Review your billing statements each month

• Keep your credit card in a purse or wallet

• Be safe with your credit card online

• Sign blank credit card receipts

To minimize the fee on Your Credit Card, you should avoid ……….............

• Advance payment

• Late payment

• Invoice

• Annual payment

Find the simple interest for BD 5000 at 10% annually for 2 years.

• BD 1000

• BD 2000

• BD 3000

• BD 5000

All fees are considered as a credit card fee EXCEPT ............................... fee.

• Membership

• Loan Services

• Over-limit

• Late payment