Financial Literacy Quiz for College Students

What is a primary benefit of using a debit card in college?

• It helps build credit history.

• It offers cashback rewards.

• It provides spending control.

• It allows for cash advances.

What is a potential drawback of using a debit card?

• It requires a high credit score.

• It can lead to debt accumulation.

• It may have limited benefits.

• It incurs interest charges.

How can a college student obtain a debit card if they are under 18?

• Use a credit card instead.

• Visit a bank with a parent or guardian.

• Request one from their college.

• Apply online independently.

What is a key advantage of using a credit card responsibly in college?

• It eliminates all fees.

• It helps build credit history.

• It guarantees no debt.

• It provides unlimited spending.

What is a common feature of credit cards that debit cards usually lack?

• Overdraft protection.

• Reward programs and perks.

• No annual fees.

• Direct account linkage.

What happens if you fail to make the minimum payment on a credit card for more than 30 days?

• You receive a cashback bonus.

• You are exempt from interest charges.

• Your credit score could be impacted.

• Your credit limit increases.

What is a cash advance in terms of credit card usage?

• A fee-free withdrawal.

• Borrowing money against your credit line.

• A reward for timely payments.

• An automatic payment feature.

What is a potential risk of using a credit card in college?

• It guarantees a high credit score.

• It might create the temptation to overspend.

• It eliminates all financial risks.

• It provides unlimited credit.

What should you do if your credit card is stolen or misused?

• Report it right away to avoid liability.

• Continue using the card.

• Ignore the charges.

• Wait for the monthly statement.

What is the Annual Percentage Rate (APR) in credit card terms?

• The fee for opening a credit card.

• The interest rate on the remaining balance.

• The cashback percentage.

• The credit limit increase rate.