WorksheetsCredit Cards
Total questions: 10
Worksheet time: 6mins
Name
Class
Date
1.
What is one advantage of having a credit card?
a)
It prevents you from spending more than you earn.
b)
It allows you to make purchases without carrying lots of cash.
c)
It encourages you to budget your money wisely.
d)
It helps you pay off debts that you may have.
2.
What happens when you don't have enough money to pay for the things you charged?
a)
You end up owing less than the original amount of money you charged.
b)
You end up owing more than the original amount of money you charged.
c)
You end up owing the same amount of money you charged, it just takes a while to pay off.
3.
Why would your credit provider give you a credit limit?
a)
To remind you to pay your bill on time.
b)
To prevent you from enjoying the things you buy.
c)
To prevent you from spending more money than you can pay back.
d)
To prevent you from shopping in certain places.
4.
When you make a credit card purchase at a store, who do you agree to pay?
a)
The store.
b)
The bank where the store keeps its money.
c)
Your credit provider.
5.
How do credit card companies make money?
a)
By charging late fees and interest to their customers.
b)
By making you pay an extra dollar on every purchase.
c)
By charging late fees and interest to stores and other businesses.
d)
By earning interest on the money they have saved up.
6.
What is the best way to avoid credit card debt? Choose the best answer.
a)
Use several credit cards to avoid putting too much money on one card.
b)
Don't spend more money than you have.
c)
Only use credit cards to by
7.
Easy credit can entice people to make purchases they can't pay off. What does "entice" mean?
a)
prevent
b)
remind
c)
force
d)
lure
8.
How is charging a purchase like getting a loan?
a)
You borrow money from your credit provider.
b)
You borrow money from the store in order to pay your credit provider.
c)
You borrow money from an ATM in order to pay your credit provider.
9.
Which of the following statements is an opinion?
a)
A bad credit history is one of the worst things that could happen to a person.
b)
A bad credit history can prevent you from getting a mortgage.
c)
A bad credit history may make it difficult to get a student loan for college.
d)
None of these.
10.
What conclusion can you draw about using credit cards?
a)
They should only be used if you have a lot of money in the bank.
b)
They are the best tool you can use to spend money.
c)
They should be used with extreme caution.
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