Financial Literacy Module 3 Review

All credit card users must realize that paying the minimum payment will not reduce the debt.

• True

• False

Being responsible with a credit card means paying off the balance and not buying anything you cannot afford.

• True

• False

In theory, a salesperson is trained very carefully and expensively to make you the next sale of his or her day.

• True

• False

As a buyer, you should never pass up the offer of "ninety days same as cash."

• True

• False

A positive approach to spending is ______________. (Choose all that apply)

• shopping comparatively

• spending what you want

• using only cash when making purchases

A "significant purchase" is ______________.

• a new shirt to go with a new pair of pants

• something valued over $300

• a bottle of hair gel

• buying dinner for a friend

Shopping in quantity and at bargain prices is ___________.

• a very effective way to save money

• difficult when living in an apartment

• should be done only on holidays

• all of these

Two ways to get out of credit card debt are:

• pay more than the minimum amount each month

• Borrow money to pay it off

• Use credit cards sparingly

• Negotiate a lower interest rate.

Factors that determine the interest rate on loans, credit cards, etc.

• credit score

• amount of loan

• what you owe

_______ is a crime that involves someone pretending to be another person in order to steal money or obtain benefits