Credit Card Characteristics

What period do you have financial literacy?

• 2nd Period

• 3rd Period

• 4th Period

• 6th Period

• 8th Period

The cost of credit expressed as a yearly interest rate is known as:

• Annual Percentage Rate (APR)
• Annual Fee
• Penalty APR
• Introductory Rate

The maximum amount you may borrow on a credit card is known as:

• creditworthiness
• credit report
• credit limit
• variable rate of credit

What is an annual fee? 

• The act of transferring money 
• A fee charged by a card issuer for being a card holder. 
• The days between the last statement and the current statement. 
• A fee charged to a cardholder's account once a payment is late. 

How can you avoid paying interest fees on your credit card?

• Only use it for groceries
• pay off the full balance, on time, each month
• you cannot avoid interest fees
• only use Discover

What is a credit card?

• a card that is used for the purchase of goods and services now and payment of them later​

• a card that is connected to your bank account

• a card that lets you buy a specific item now and pay it back later

• money that has been given to you on a card as a gift

Paying the minimum payment on a credit card every month will:

• Pay a large percentage of the total balance owed every month
• Make the final amount paid substantially higher than the amount initially charged to the card
• help the cardholder create a plan for paying of a credit card in a decent amount of time
• allow the cardholder to avoid paying any interest charges 

The least amount that must be paid on a credit card each month is

• Late Fee
• Credit Limit
• Payment amount
• Minimum Payment

The higher your creditworthiness the lower interest rates you will receive from a creditor.

• True
• False

How can a cardholder avoid paying interest on a credit card?

• Do not pay anything
• Pay the minimum payment after its due date
• Pay the minimum balance every month
•  Pay the balance in full every month