Understanding Credit Card Offers

Understanding Credit Card Offers

Assessment

Interactive Video

Business, Life Skills

7th - 10th Grade

Hard

Created by

Sophia Harris

FREE Resource

This tutorial explains how to read a credit card offer, focusing on the Schumer Box, which contains all terms and conditions. It discusses the legislative background of the Schumer Box, tips to avoid credit card fees, and details about APR and variable interest rates. The tutorial emphasizes the importance of understanding these elements to make informed financial decisions.

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8 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary purpose of the Schumer Box in a credit card offer?

To list all terms and conditions

To provide a summary of rewards

To offer a discount on purchases

To display the card's design

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Where can you typically find the Schumer Box when applying for a credit card online?

In the FAQ section

Under the 'Contact Us' page

In the terms and conditions link

On the homepage

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Who was responsible for the creation of the Schumer Box legislation?

Mr. Schumer

Mr. Smith

Mr. Brown

Mr. Johnson

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What can you do to avoid fees and interest on a credit card?

Pay the minimum balance

Use the card only once a year

Pay off the balance in full each month

Transfer the balance to another card

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does APR stand for in the context of credit cards?

Average Percentage Rate

Average Payment Rate

Annual Payment Rate

Annual Percentage Rate

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does your credit score affect the APR you receive?

Credit score does not affect APR

Higher score means lower APR

Lower score means lower APR

Higher score means higher APR

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does it mean when an APR is described as 'variable'?

It decreases over time

It remains constant

It changes with the market

It is fixed for the first year

8.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What role does the Federal Reserve play in determining the prime rate?

It ignores the prime rate

It sets the prime rate

It has no influence on the prime rate

It lowers the prime rate annually