APR Quiz

Imagine you're taking out a loan for a new car. What type of APR would remain the same even if the Prime Rate goes up or down? This APR is agreed upon at the start and does not fluctuate over time.

• Fixed APR

• Variable APR

What is the APR that commercial banks typically offer to their most creditworthy customers, which is often used as a reference point for various loan rates?

• Variable APR

• Fixed APR

• Prime Rate

Imagine you are taking out a loan, and the bank offers you an APR of 16.24%. What would be the correct way to quote this APR?

• 16%

• Around 20%

• 16.24%

• 20.1234520%

What is the length of time the introductory or promotional APR is in effect for a new credit card?

• Billing Cycle

• Duration

• The "Go To" point

What is the APR rate once the introductory or promotional period ends on your credit card?

• Duration

• Billing Cycle

• The "Go To" Rate

Select all that apply for types of APRs when considering a new credit card

• Purchases

• Cash Advances

• Balance Transfers

What factor primarily influences the Variable APR on a credit card?

• The Federal Reserve's decisions

• The cardholder's credit score

• The Prime Rate

What uses the prime rate plus a pre-determined amount to establish interest rates on a credit card?

• Variable APR

• Fixed APR

When considering a new credit card, what is the term used to describe the fee charged annually for the benefits associated with the card?

• Annual Fee

• Service Charge

• Membership Fee

What type of rewards might a credit card offer for making purchases?

• Points

• Cash Back

• Travel Miles

• All of the above