Unit 2 Material Econ

One difference between a fixed rate card and a variable rate card, is that a variable rate card-

• doesn’t have a changing APR, or at least doesn’t change often.

• has an APR that changes from time to time and notification is not required.

• must first notify you before increasing the APR

Many credit card companies offer ________ to use their cards, such as rebates, frequent flier miles, and “free” gift cards to popular stores.

• APRs

• incentives

• compound interest rates

Which of the following terms refers to the number you are given based on key pieces of your credit history to calculate your score at the moment?

• APR

• Credit Limit

• Credit Score

Which of the following would be considered an excellent credit score?

• 300

• 500

• 800

What is the annual percentage rate for purchases for this credit card? 

• 22.24%

• 19.24%

• 28.24%

If you receive a cash advance from the ATM using your credit card, what percent in interest will you pay on that cash?

• 19.24%

• 22.24%

• 28.24%

On 5/12/22 you went to Target and buy school supplies for $20.50. You then go to Starbucks and buy a drink for $6.50. What is your balance in your checking account at the end of the day?

• $27

• $473

• $479.50

What was your checking account balance at the end of the day on 3/14?

• $350.05

• $390.04

• $310.06

What was your checking account balance at the end of the day on 3/19?

• $204.81

• $310.06

• $415.31

According to the 50/30/20 budgeting rule of thumb, what percentage of your income should be spent on needs?

• 50%

• 30%

• 20%