5.3 Money Vehicle- credit cards

What do the letters 'APR' stand for when you see them on your credit card?

• Average Principal Returned

• Average Percentage Rate

• Annual Price Rate

• Annual Percentage Rate

What is the term for the period between your billing cycle and the due date of your payment?

• Grace Period

• Interest Cycle

• Principal Period

• Dead Period

How would you define the concept of 'treating your credit like a debit card'?

• Using credit cards exclusively for earning rewards.

• Limiting credit card usage to situations with available cash.

• Reserving debit card usage for cases when credit is not accepted.

• Utilizing credit cards for everyday transactions similar to a debit card.

What is your monthly interest rate if your APR is 20%?

• 0%

• 1.0%

• 1.6%

• 2.2%

If you fail to make a credit card payment for over 6 months, you will be at risk of facing what consequence?

• Credit card cancellation/charged off

• Credit card upgrade

• Credit card rewards

• Credit card theft

To apply for a credit card, which of the following is NOT required?

• Social Security number

• Your password

• Proof of income

• Date of birth

Harper is on vacation and needs cash for the stores she is visiting today. Since she doesn't have access to an ATM, she considers using a 'Cash Advance' option on her credit card. What should Harper keep in mind about cash advances?

• This is not really cash, it is a different form of currency.

• This is a great deal because she will earn twice the rewards.

• This is the same as using her credit card the traditional way.

• This is an immediate loan and will charge interest without a grace period.

Adrian is eager to start building his credit before turning 18. Which of the following options are available to him? (Check All)

• Secured Credit Card

• Unsecured Credit Card

• Authorized User

• Group Credit User

Kim is determined to avoid falling into the 'Credit Trap' while building her credit. What is the most effective way for her to achieve this goal?

• Never use her credit card.

• Never pay with credit when debit is available.

• Never carry a balance on her credit card.

• Never miss a Minimum Amount Due payment.

Darrel is considering purchasing a new refrigerator for the office kitchen. What is an advantage that he should be aware of when using credit cards for this purchase?

• Credit cards will provide extra payments.

• Credit cards will provide insurance features.

• Credit cards will provide the ability to buy a nicer refrigerator.

• Credit cards will provide quick access to cash.