Credit Card Costs 25 Business Math

Anika uses her credit card to buy a new laptop. The credit card issuer pays for the laptop on her behalf, and Anika will pay the issuer back later. What is the term for this process?

• Debit Transaction

• Credit Transaction

• Cash Deposit

• Balance Inquiry

Grace receives a monthly report that details her purchases, fees, and payments. What is this report called?

• Credit Card Statement

• Bank Deposit Slip

• Loan Agreement

• Mortgage Statement

Olivia has a credit card and wants to avoid paying extra charges. What is the term for the period she has to pay her balance without incurring finance charges?

• Minimum Payment

• Annual Fee

• Credit Limit

• Grace Period

Charlotte is reviewing a document that contains key credit card terms and conditions before applying for a new card. What is the term for this document?

• Credit Limit

• Disclosure Box

• Annual Fee

• Grace Period

Michael has a credit card and often carries a balance from month to month. What is the term for the yearly interest rate charged on his carried-over balance?

• Annual Percentage Rate (APR)

• Minimum Payment Due

• Credit Utilization Ratio

• Outstanding Balance

Olivia received her first credit card and wants to know the maximum balance she can have on it. What is this term called?

• Max Credit

• Minimum Payment

• Credit Limit

• Billing Cycle

Mia needs to pay for an emergency expense and decides to withdraw money from her credit card's available limit. What is the term for this feature?

• Cash Advance

• Balance Transfer

• Minimum Payment

• Credit Shield

Priya is reviewing her credit card statement and wants to know the term for the last date on which transactions can be captured on the statement. What is this date called?

• Statement Closing Date

• Transaction Posting Date

• Billing Cycle Start Date

• Payment Due Date

Abigail is reviewing her credit card statement and wants to calculate the monthly interest rate. She knows the APR and divides it by 12 to find this rate. What is the term for this calculation?

• Monthly Periodic Rate

• Annual Percentage Yield

• Compound Interest Rate

• Effective Annual Rate

David noticed a charge on his credit card statement that he did not make or approve. What is the term for this type of charge?

• Unauthorized Purchase

• Authorized Transaction

• Recurring Payment

• Refund Request