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FIN-FL-10-10.2: Reading through a credit card disclosure (aka the Schumer Box), you see the A.P.R. for a specific card is set at 9.99% - 23.99%. Which of the following statements is probably TRUE?

• When given a range of A.P.R.s like this, you can assume most cardholders pay the lowest rate listed

• One of the primary factors determining your card's A.P.R. is your credit score

• With credit card A.P.R.s, cardholders like higher A.P.R.s because they earn more

• The A.P.R. on credit cards is usually fixed so they won't be adjusted as long as you are a cardholder

FIN-FL-10-10.2: Reading through a credit card disclosure (aka the Schumer Box), you see the A.P.R. for a specific card is set at 9.99% - 23.99%. Which of the following statements is probably TRUE?

• When given a range of A.P.R.s like this, you can assume most cardholders pay the lowest rate listed

• One of the primary factors determining your card's A.P.R. is your credit score

• With credit card A.P.R.s, cardholders like higher A.P.R.s because they earn more

• The A.P.R. on credit cards is usually fixed so they won't be adjusted as long as you are a cardholder

FIN-FL-10-10.2: Which of these credit card payback strategies would result in you paying the HIGHEST amount of interest?

• Paying 20% of your credit card balance every month on time

• Paying off your credit card bill in full every month

• Making the minimum payment (3% of your credit card balance) every month on time

• Making the minimum payment (3% of your credit card balance) every month with an occasional late payment

FIN-FL-10-10.2: BestBank's Visa credit card discloses an A.P.R. of "Prime Rate + 5.74% to Prime Rate + 22.74%." If the Prime Rate increases from 3.25% to 4.25%, what impact would this have on A.P.Rs for cardholders?

• No change since credit card A.P.Rs don't change as long as your account is open

• Increase in A.P.R by 1%

• Decrease in A.P.R. by 1%

• Increase in A.P.R. by 22.74%

FIN-FL-6-6.2: Based on the Card Statement above, how much credit does this cardholder have available to use?

• $0 

• About $500 

• About $1600 

• $2100 

FIN-FL-6-6.2: Which of the following statements comparing credit and debit cards is TRUE?

• Far more businesses accept credit cards than debit cards

•  Credit cards pull money directly from your bank account, while debit cards get their money from Visa or Mastercard

• Credit card companies provide you with a monthly statement, while debit cards do not

• With debit cards, you're spending your own money at point of sale, while with credit cards, you're promising to pay back the money eventually

FIN-FL-6-6.1: Which of the following statements is TRUE?

• If you make the minimum payment on your card by the due date, the credit card company will not charge you interest.

• If you pay your balance in full after the due date, the credit card company will not charge you interest. 

• If you pay your balance in full after the due date, you will be charged interest.

• If you pay your balance in full by the due date, you will be charged interest. 

FIN-FL-10-10.3: Which of these statements best explains why it's often a good idea to pay more than the monthly amount due on an amortized loan? 

• Every time you pay extra, the lender will reduce the interest rate they're charging by a small amount.

• The extra payment will be applied to the principal amount you owe, which will pay down your debt more quickly. 

• The extra payment will be applied to the interest you owe, which will reduce the overall cost of your loan.

• Amortized loans typically have much higher interest rates than credit cards, so they're the best place to put your extra cash.

FIN-FL-10-10.2: Ashton needs to get his car fixed in order to get to work, and he doesn't have an emergency fund or enough cash in his account to pay for the repair, which costs $975. Which option below is likely the WORST financial decision to solve his problem?

• Take out a home equity loan

• Obtain a loan through a peer-to-peer lending website

• Put the repair on his credit card 

• Take out a payday loan

FIN-FL-10-10.2: Elizabeth is considering buying a $30,000 car. Which financing option would have the LOWEST expected monthly payment and the HIGHEST expected total interest payments? 

• $0 down payment, 6% interest, 60 months

•  $0 down payment, 6% interest, 84 months

• $3000 down payment, 6% interest, 60 months

• $3000 down payment, 0% interest, 36 months