Credit Cards Quiz

What are credit cards, and how are they used?

• A type of loan for buying a house

• A card that allows you to borrow money up to a certain limit

• A card used only for online shopping

• A card that stores your personal information

What is credit interest (APR), and what does it mean?

• The fee for opening a bank account

• The annual percentage rate charged for borrowing

• The monthly fee for using a credit card

• The interest earned on savings accounts

What are some potential benefits and drawbacks of using credit cards?

• They provide convenience but can result in high interest charges

• They are always interest-free and risk-free

• They guarantee savings and have no negative aspects

• They are only for luxury purchases and have no risks

What is a credit card issued by?

• A grocery store

• A bank or financial institution

• A retail shop

• A government agency

What happens when you pay for goods or services with a credit card?

• You are giving a gift

• You are borrowing the cost of purchase from the bank

• You are paying with cash

• You are using a debit card

Where do purchases made with a credit card appear?

• On a grocery list

• On a credit card statement

• On a receipt

• On a bank passbook

What happens if you do not pay the full amount on your statement before the due date?

• You receive a discount

• You are charged interest on the balance

• You get a reward

• You are given more credit

What is the minimum age required to open a credit card without a cosigner?

• 16

• 18

• 21

• 25

How are purchases made with a credit card?

• Using your own money

• As loans using the bank’s money

• Directly from a savings account

• With no need to pay back

What happens if you make a purchase with a debit card without sufficient funds?

• The purchase is automatically approved

• The purchase is declined or subject to an overdraft fee

• The bank covers the cost without any fee

• The purchase is converted into a loan