U2 - Credit Continued

Which of the following is typically provided a month in advance under service credit?

• Groceries

• Utility services

• Clothing

• Electronics

What happens to a closed-end account when the loan is fully paid?

• It remains open

• It is closed

• It is transferred

• It is renewed

Which of the following is NOT a characteristic of open-end credit?

• Allows repeated purchases

• Account remains open

• Requires a down payment

• Includes credit cards

What is one of the main advantages of using credit cards?

• They require carrying a lot of cash.

• They are difficult to use.

• They offer convenience for purchases.

• They do not provide any purchase protection.

How do credit cards help in terms of safety?

• They do not offer any protection if lost.

• They provide cell phone security alerts.

• They require a PIN for every purchase.

• They automatically block unauthorized purchases.

What is purchase protection in credit cards?

• It offers no insurance for purchases.

• It provides extended warranties and insurance.

• It only applies to cash purchases.

• It does not cover online purchases.

How do credit cards assist with record keeping?

• They do not provide any spending summary.

• They offer a detailed summary of spending.

• They only track cash transactions.

• They require manual entry of expenses.

What is the primary function of a credit card?

• To store cash.

• To allow borrowing and repayment of money.

• To provide free banking services.

• To increase spending limits automatically.

What is one disadvantage of not using credit cards responsibly?

• It improves your credit score.

• It can lead to financial difficulties.

• It provides more rewards.

• It reduces your spending power.

What is the benefit of having a history of purchases with credit cards?

• It complicates financial tracking.

• It provides a detailed spending summary.

• It hides your spending habits.

• It requires manual tracking of expenses.