Term QUIZ Review #1

What does APR stand for?

• Annual Prestige Rate

• Annual Percentage Rate

• Annual Percentage Return

• Annual Phantom Rating

What is the Annual Percentage Rate (APR) used for?

• The interest rate you will pay on your car loan.

• The interest rate you will pay on your credit score.

• The interest rate you will pay on your debit card.

• The interest rate you will pay on your credit card.

What is the Annual Percentage Rate (APR) definition?

• An interest rate that does not charge you for borrowing money.

• A yearly interest rate that shows the total cost of borrowing money.

• A bi-weekly interest rate that shows the total cost of borrowing money.

• An interest rate that is earned in one period and is added to the principal and used to calculate interest in the next period.

What is the definition of Automatic Payment?

• When a bank makes a payment for the account holder automatically.

• An annual fee

• When a bank makes a deposit for the account holder automatically.

• When a bank makes a payment for the account holder when they call the bank.

What is Automatic Payment used for?

• Monthly car loan payments.

• Monthly debit card bills.

• Monthly principal loan payments.

• Monthly credit card bills.

What is the definition of Debit Card?

• Money that is given to the holder's bank account immediately at the time of a transaction

  (as a purchase).

• Money that is taken from the holder's bank account immediately at the time of a transaction (as a purchase).

• Money that allows the holder to purchase goods or services on credit

  (as a purchase).

• Money that allows the holder to purchase only groceries or services on credit

  (as a purchase).

What can a Debit Card be used for?

• To buy a house.

• To buy a car.

• To buy groceries from Target.

• To buy food from a cash only restaurant.

• To buy a shirt online.

If there is not enough money in the account for your Debit Card (checkings), what will happen?

• Your card will be accepted.

• Your card will be taken by the cashier/clerk.

• Your card will be declined.

• Your card will make your credit score go down.

What is the definition of a Credit Card?

• A small plastic card issued by a bank, business, etc., lets you borrow money to buy things while having to pay it back with interest.

• A small plastic card issued by a dealership, lender, etc., lets you borrow money to buy things while not having to pay it back with interest.

• A small plastic card issued by a bank, business, etc., allowing the holder to purchase only cars or houses on credit.

• A small plastic card issued by a bank, business, etc., allowing the holder to not purchase goods or services on credit.

What can you purchase with a Credit Card?

• A house.

• Groceries from Target.

• Concert tickets.

• A car.