Lesson 7-3 Activity

1.) What is the finance charge?

2.) When might a credit cardholder incur a penalty fee?

3.) List some costs associated with using credit.

4.) The total dollar amount of all interest and fees you pay for the use of credit

• finance charge
• balance transfer
• billing cycle
• cash advance
• fixed interest rate

5.) The period of time between credit card billings

• billing cycle
• balance transfer
• cash advance
• finance charge
• fixed interest rate

6.) An interest rate that goes up and down with inflation and other economic conditions

• variable interest rate
• balance transfer
• billing cycle
• cash advance
• finance charge

7.) The amount of time you have to pay your credit card balance in full to avoid paying interest

• grace period
• balance transfer
• billing cycle
• cash advance
• finance charge

8.) An interest rate that is set and does not change from month to month

• fixed interest rate
• balance transfer
• billing cycle
• cash advance
• finance charge

9.) The amount you are required to pay each month on a credit account

• minimum payment
• balance transfer
• billing cycle
• cash advance
• finance charge

10.) Moving balance from one credit card account to another

• balance transfer
• billing cycle
• cash advance
• finance charge
• fixed interest rate