Credit Cards, Debit Cards, and International Spending

• Which choice is incorrect in regards to benefits of using credit cards? 

• you can only earn rewards in point form

• you have better interest rates for mortgages.

• your spending is limited by your credit limit.

• if you don't pay the full amount it carries over to the next month, interest will be charged on that balance

• As you pay down your balance, you have access to more credit. This is called (a)   credit. 

• When making a foreign transaction, what is the best choice?

• 1. charge card with foreign currency and choose card with a conversion fee

• 1. charge card with foreign currency and choose card without a conversion fee

• 1. charge card with local currency and choose card with a foreign transaction fee

• charge card with local currency and choose card without a foreign transaction fee

• Currency conversion rates are frequently worse than making purchases in (a)   currency with a foreign transaction fee

What is considered a good credit score?

• >690

• <690

• >320

• 1000

Debit cards differ from credit cards because:

• debit cards let you charge for amounts larger than what is in your account

• debit cards are limited by the amount of money you have in your account

• debit cards have higher interest rates

• credit cards are rare

1. What is the typical foreign transaction fee in Canada?

• 2.5%

• 3%

• 3.5%

• 4%

1. Let’s say you are travelling in Cuba. When are foreign transaction fees collected?

• 1. credit card purchases at a candy shop

• 1. withdrawing cash from an ATM

• online purchases

• all of the above