Introduction to Credit

For the first time in history, total credit card debt in the US exceeds: 

• $1 trillion
• $100 thousand
• $10 million
• $10 billion

Credit cards are an example of fixed debt - repayments have a set length of time with set payments each month.

• True
• False

Taking on additional debt can lower a individual's credit score which can lead to higher rates on future borrowing.

• True
• False

Increased credit card use and increased consumer spending in an economy can directly lead to:

• Higer inflation rates
• Lower inflation rates
• Lower GDP
• Lower employment

Which form of debt is typically the largest component of household debt?

• Credit Card Debt

• Auto Loan Debt

• Student Loan Debt

• Mortgage Debt

What happens when the total credit card debt in the US decreases?

• $1 trillion decrease in GDP

• Increase in employment

• Decrease in inflation rates

• Increase in inflation rates