Unit Nine Review

Most information is retained on a credit report for this many years.

Which statement about a debit card is true?

• Each debit card purchase represents a loan that the user must repay later.
• The user can avoid paying interest on the purchase amount by paying the entire balance each month.
• After a user buys an item with a debit card, the charge must appear on the user’s account three weeks later.
• When a user buys an item with a debit card, the bank deducts money directly from the user's checking or savings account.

Which statement about using a credit card is true?

• A Banks charge large fees if users spend beyond their credit limits.
• B Each credit card purchase represents a loan that the user must repay later.
• C To purchase any time or service with a credit card, the user must have a PIN (Personal Identification Number).
• D When a user purchases an item with a credit card, the bank deducts money directly from the user’s checking account.

Which is the best reason to maintain a positive credit history?

• A To decrease the likelihood of making late payments
• B To decrease the amount of fees included in loan transactions
• C To increase your chances to get approved for a loan
• D To increase the chances of getting higher interest rate

Which action will help a person establish a positive credit history?

• A Borrowing more money than can be repaid
• B Buy a house, boat, and car all in the same month
• C Make payments late on a regular basis
• D Pay bills on time

Which statement is NOT true?

• A The balance in your check register should be the amount you have in your checking account.
• B When you write a check to make a purchase, your checking account balance will decrease that amount.
• C It is not possible for your check register to state a negative amount.
• D To determine your current check register balance, add any new deposits and subtract any new debits from your previous balance.

This is the smallest amount you can pay on a credit card bill.

• Annual Fee
• Minimum Payment
• Credit Limit
• Interest Rate

This is the age you have to be to begin applying for credit

• 25
• 16
• There is not a minimum age.
• 18

These taxes come out of a person’s paycheck; meant to help during retirement.

• County and City
• Social Security
• Medicaid
• Property

This tax comes out of paychecks and helps older and sick people pay for medical care.

• County and City
• Social Security
• Medicaid
• Property