Money 101, Unit 4: Credit

Owing someone something (like money) is known as what?

• Credit

• Debt

• Debit

• Savings

Debt is...

• Always good

• Always bad

• Sometimes bad, but a normal part of life

• Not real

With savings accounts interest was ___; with credit cards / loans, interest is ___

• Good; Bad

• Bad; Good

• Good; Good

• Bad; Bad

If you do not pay the full balance of your credit card, you may be charged

• An overdraft fee

• A one time fee

• Interest

• Savings

If you make your credit card payment late, you may be charged what?

• Interest

• Late fees in addition to the interest charge

• Savings

• Credit

Which type of card is for borrowing money and repaying it a later date?

• Credit Card

• Debit Card

• Both

• Neither

Which type of card takes money directly from your checking account?

• Credit Card

• Debit Card

• Both

• Neither

Which card may lead to being in debt to the account provider?

• Credit Card

• Debit Card

• Both

• Neither

Which of the following is a reason to use a credit card?

• Out of necessity when money is low

• To build your credit score

• To earn points / rewards

• All are correct

Paying interest on a credit card means what?

• You end up paying less than the original amount

• You pay the same amount no matter what

• You end up paying more than the original amount

• The bank pays you and you never have to pay it back