Credit and Banking Review

What are some common credit card fees that consumers may encounter?

• Annual fees, late payment fees, over-limit fees, cash advance fees, and foreign transaction fees

• Application fees

• Interest fees

• Balance transfer fees

Explain the concept of credit card interest rates and how they are calculated.

• Credit card interest rates are determined by the number of purchases made on the card

• The interest rates on credit cards are calculated as a percentage of the outstanding balance on the card.

• The interest rates on credit cards are calculated based on the cardholder's age

• Interest rates on credit cards are fixed and do not change based on the outstanding balance

Differentiate between a checking account and a savings account.

• Savings account is for paying bills, while a checking account is for saving money.

• Checking account is for everyday transactions, while a savings account is for saving money.

• Checking account is for earning interest, while a savings account is for managing daily expenses.

• Checking account is for long-term investments, while a savings account is for everyday transactions.

Explain the function of a debit card and how it differs from a credit card.

• A debit card allows you to access funds in your bank account to make purchases or withdraw cash, while a credit card allows you to borrow money up to a certain limit to make purchases.

• A debit card allows you to access funds in your bank account to make purchases or withdraw cash, while a credit card allows you to access funds in your bank account to make purchases or withdraw cash.

• A debit card allows you to borrow money up to a certain limit to make purchases, while a credit card allows you to access funds in your bank account to make purchases.

• A debit card allows you to access funds in your bank account to make purchases or withdraw cash, while a credit card allows you to access funds in your bank account to make purchases or withdraw cash.

What are some common types of fraud that can occur in the context of credit cards and banking?

• Stealing physical checks

• Hacking social media accounts

• Identity theft, account takeover, phishing, skimming

• Counterfeiting money

How can consumers protect themselves from falling victim to credit card and banking fraud?

• By regularly monitoring their accounts, setting up alerts for suspicious activity, using strong and unique passwords, being cautious of phishing scams, and keeping personal information secure.

• By sharing their account details with friends and family

• By using the same password for all their accounts

• By clicking on links in emails without verifying the source

What are some factors that can affect a person's credit card interest rate?

• Number of pets, favorite food, height

• Credit score, payment history, credit utilization, economic conditions

• Number of siblings, favorite movie, birth date

• Favorite color, shoe size, hair length

At the end of the month you have charged $152.56 on your credit card. Your APR is 18%. How much will you pay in interest?

• $3.25

• $3.43

• $6.87

• $6.95

What are some potential consequences of not paying credit card bills on time?

• Damage to credit score, increased interest rates, late fees, potential legal action

• No impact on credit score, reduced interest rates, no late fees

• Improved credit score, lower interest rates, waived fees

• Lower credit limit, decreased interest rates, no consequences

What is the primary purpose of a credit score?

• To determine a person's eligibility for specific credit cards

• To assess a borrower's creditworthiness and the likelihood of repaying debts on time

• To calculate the interest rate on a savings account

• To track the number of credit cards a person owns