Final Exam Review 2022

Which of the following is considered a positive aspect of credit?

 

          

• A credit card makes day-to-day purchases more convenient

•   Big debts help you build a positive credit rating.

• Your financial capabilities are determined by the number of credit cards you

              own.

• You can just pay the minimum balance every month.

What does APR mean?

 

 

• Annual percentage rate

•   Applied percentage rate

•   Applied percentage rate

• Actual percentage rate

Which is the following is a disadvantage of using credit?

 

           

 

• If you borrow too much money it may be difficult to make payments

•    Credit can allow you to apply for more credit

•   You will not be tempted to make impulse purchases

• You can’t borrow money for college with credit

The average new college graduate today has more than _________ in debts, including  credit cards, student loans, and other debts, such as car loans.

 

            

• $25,000

•   $10,000

• $15,000

•   $20,000

Many people have big debts and are struggling to get by financially because they make only the _________ on their credit cards each month.

 

         

• minimum payment

•   finance payment

• installment payment

• interest payment

Almost _______ people in the United States file for bankruptcy each year.

 

 

 

 

•    1.5 million

• 2.5 million

• 1.0 million

•   2.0 million

Which source of credit would be used to pay for goods or services at a specific store?

 

      

• Charge or Retail Account

• Credit Card

• Charge Card

•   Installment Loans

Which of the following may be a feature of some credit cards?

 

         

• Cash Advances

• Lower interest rates than credit unions

• Cosigner

•   No minimum payment

    If you get a cash advance on your credit card, which of the following is true?

 

           

 

• Higher interest rate than if you bought something with the credit card

• You will not be charged interest on cash advances

• You will not be required to pay it back for 6 months

• All of the above

An installment loan is used for:

 

       

• A single expensive purchase

• Paying off monthly bills

• An item that will be held by a store until it is paid in full

• Small items