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What is an annual fee? 

• The act of transferring money 
• A fee charged by a card issuer for being a card holder. 
• The days between the last statement and the current statement. 
• A fee charged to a cardholder's account once a payment is late. 

What is an example of cash advance? 

• Asking your siblings for money.
• Getting your paycheck early.
• Going to the ATM
• Going to the store and getting cash back from your credit card. 

What is a grace period?

• The time allowed to pay your balance with a low interest rate 
• The time frame to spend as much money as you can.
• The time allowed to pay your balance without being charged. 

Annual Percentage Rate (APR) is the yearly percentage rate of the finance charge. 

• True
• False 

Paying the minimum payment on a credit card every month will:

• Pay a large percentage of the total balance owed every month
• Make the final amount paid substantially higher than the amount initially charged to the card
• help the cardholder create a plan for paying of a credit card in a decent amount of time
• allow the cardholder to avoid paying any interest charges 

What does APR stand for?

• Annual purchase rate
• Annual percentage rate
• Approximate payment rotation
• Authorization processing rate

A credit card statement shows a previous balance of $500, a payment of $200, and new charges of $150. What is the new balance?

• $450

• $350

• $400

• $300

If a credit card has a balance of $1000 and an APR of 24%, what is the interest charged for one month?

• $20

• $24

• $18

• $22

The maximum amount you may borrow on a credit card is known as:

• creditworthiness
• credit report
• credit limit
• variable rate of credit

If the annual percentage rate (APR) on a credit card is 18%, what is the daily interest rate?

• 0.0493 %

• 1.8%

• 2%

• 1.2%