Ramsey Chapter 4 - Lesson 4 (Quiz)

Why might some credit cards have higher annual fees?

• They offer no benefits

• They have lower interest rates

• They offer perks like airline miles

• They are used less frequently

What is the financial impact of choosing to use credit to make purchases?

• It eliminates all fees

• It increases costs due to interest and fees

• It guarantees savings

• It reduces debt

What is a returned payment fee?

• A fee for a declined transaction

• A fee for a late payment

• A fee for a payment that cannot be processed

• A fee for exceeding the credit limit

What determines the spending limits set by credit card companies?

• The cardholder's age

• The cardholder's income and credit score

• The cardholder's employment status

• The cardholder's education level

What happens if you exceed your credit limit on a credit card?

• You receive a reward

• You have to pay a penalty

• Your credit score increases

• Your interest rate decreases

What is a consequence of missing a credit card payment?

• You earn bonus points

• You have to pay a late fee

• Your credit limit increases

• You receive a discount

What is the typical range for merchant fees on credit card transactions?

• 1-2%

• 2-3%

• 3-4%

• 4-5%

According to the CARD Act of 2009, who cannot be given credit cards?

• Anyone under 18

• Anyone under 21 (with a few exceptions)

• Anyone over 65

• Anyone without a job

What is the impact of using a debit card instead of a credit card for purchases?

• You spend more money

• You spend less money in the long run

• You earn more rewards

• You increase your credit score

What is the benefit of using a debit card over a credit card?

• Higher spending limits

• No risk of going into debt

• More reward points

• Lower interest rates