Financial Literacy Workplace 11

What is an annual fee in the context of credit cards?

• A monthly charge for using a credit card

• A one-time fee for opening a credit card account

• A once yearly charge for having a credit card

• A fee for exceeding the credit limit

What does APR stand for in credit card terminology?

• Annual Payment Rate

• Annual Percentage Rate

• Annual Penalty Rate

• Annual Premium Rate

What is a balance transfer?

• Transferring money from a savings account to a credit card

• A transfer of debt from one credit card to another

• Transferring a credit card to another person

• A transfer of funds from a credit card to a chequing account

What is a cash advance?

• Using a credit card to withdraw cash from an ATM

• A loan taken from a bank

• A payment made to a credit card company

• A fee for late payment

Anaya just received her first credit card. She is curious to know what a credit limit is. Can you help her understand?

• The minimum amount of credit available on a card

• The maximum amount of credit a person can borrow from a credit card company

• The average amount of credit used monthly

• The amount of credit left after a purchase

Priya recently got her first credit card. She heard about a grace period but isn't sure what it means. What is a grace period in credit card terms?

• A period when no interest is charged on a credit card

• A time when extra fees are applied

• A period when the credit limit is increased

• A time when payments are doubled

Harper forgot to pay her credit card bill on time. What is a late fee?

• A fee for paying the minimum balance on time

• A fee assessed for paying the minimum balance of a credit card after the due date

• A fee for exceeding the credit limit

• A fee for not using the credit card

Ellie wants to buy a new laptop but doesn't have enough money right now. She decides to take out a loan from the bank under an agreement to pay it back later, usually with interest. What is Ellie in this scenario?

• Principal

• Credit

• Borrower

• Lender

When Benjamin took out a loan to buy a car, what was the initial amount of money he borrowed called?

• Interest amount

• Credit limit

• Principal

• Collateral

Aarav is applying for a loan to buy a car. The bank asks him to provide something as security for the repayment of the loan. What is this security called?

• Credit card

• Collateral

• Credit limit

• Cash advance