Microteaching Quiz

What is credit?

• Credit is the ability to borrow money (now) that you will repay later

• Credit is a type of loan that must be repaid immediately.
• Credit is how much cash you has in your bank account.

• Credit is the process of saving money.

What is a credit card?

• A credit card is a type of loan that you can pay back whenever you want with no interest.

• A credit card is a physical card used only for cash withdrawals.
• A credit card is a prepaid card and it is linked to your checking account.

• Plastic or metal cards used to pay for items or services now (using credit).

What is an interest rate?

• A measure of inflation in the economy.
• The total amount of money in circulation.
• A type of investment strategy.
• The amount a lender (bank or credit card company) charges a borrower (in this case - you). This is a percentage (%) of the amount you borrowed. ​
  

What is a credit limit?

• How long you have to repay a loan.

• The maximum amount of credit that the bank or lender gives/extends to an individual.
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  For example: $500, $1000 or $5,000.

• The interest rate applied for a loan.

• The total amount of money in your bank account.

What are penalties?

• Charges/fees that occur if you do not pay off your total credit card balance at the end of the month/billing period.

• Penalties are rewards for good financial behavior.

• Penalties are optional guidelines for your financial behavior.

• Penalties are suggestions for improving your financial performance.

What are benefits?

• Benefits are the amount a lender (bank or credit card company) charges a borrower (in this case - you). This is a percentage (%) of the amount you borrowed.

• Good things/advantages (provided by your credit card).

• Benefit always have negative outcomes.

• Benefits are plastic or metal cards used to pay for items or services now (using credit).​