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WorksheetsPayment Types Review
Total questions: 31
Worksheet time: 16mins
Name
Class
Date
1.
Which of the following payment types require you to pay upfront?
a)
Money Order
b)
Cashiers Check
c)
Pre-Paid Card
d)
All of these!
2.
What is a credit limit?
a)
The required payment to your credit card company.
b)
The amount of interest you are charged each month.
c)
The maximum amount you can charge each billing cycle.
d)
How many credit cards you can own.
3.
Which of the following is true?
a)
Checks and Debit Cards both withdraw money directly from a bank account.
b)
Checks are the most widely accepted form of payment
c)
Debit Cards often have a higher interest rate than Credit Cards.
d)
Debit cards offer the highest level of fraud protection.
4.
Is it better to use a debit card or a credit card?
a)
Debit Card
b)
Credit Card
5.
Which of the following statements comparing debit cards to credit cards is TRUE?
a)
Debit cards allow you to draw funds directly from your checking account.
b)
Debit cards typically offer greater fraud protection than credit cards.
c)
Debit cards never require a signature to finalize a purchase like credit cards.
d)
Debit cards charge higher interest rates on purchases than credit cards.
6.
Which payment method typically charges the highest interest rates?
a)
Credit cards
b)
Cashier's checks
c)
Pre-paid cards
d)
Payday loans
7.
Which of the following is true of both paying with a check and paying with a debit card?
a)
Both are accepted by most people and most businesses.
b)
A personal identification number must be anytime checks or debit cards are used.
c)
When used, both take money directly out of a bank account.
d)
Both work like a loan from your bank that you can pay back later.
8.
You buy a coat with a credit card. The coat cost $100, but when you get your bill, you see that your balance is $120. Why is it more?
a)
You were charged a minimum balance fee of $20.
b)
Your credit limit is $120.
c)
Your bank charged a $20 late fee.
d)
Your bank charged $20 interest.
9.
Which of the following tells you how much your credit card interest will be if you only pay the minimum balance each month?
a)
Late Fee
b)
Annual Membership Fee
c)
Annual Percentage Rate
d)
Balance Transfer Fee
10.
Which payment type can help you stick to a budget?
a)
Credit Cards
b)
Debit Cards
c)
Payday Loans
d)
Cash Advances
11.
Which of the follow will happen if you miss a monthly credit card payment?
a)
You will be charged a late fee
b)
You lose reward points
c)
Your APR will increase the next month
d)
Both orange and red.
12.
If you are planning to carry a large balance on your credit card, which of the following credit card features should you look for?
a)
Low APR
b)
Low balance transfer fee
c)
Lots of credit card rewards
d)
A large credit limit
13.
Which of the following is NOT true of credit cards?
a)
They offer the highest level of fraud protection.
b)
They are the best payment type to use when trying to stick to a budget.
c)
You can be charged a fee if you are late making a monthly payment.
d)
Some offer rewards, like cash back or airline miles.
14.
Your credit card's credit limit is $200. You see a TV you want to buy that costs $350. Can you use your credit card to buy it?
a)
Yes - The Credit Limit is for how much you need to pay
b)
No - The Credit Limit is the maximum you can charge
15.
The annual percentage rate on a credit card determines _______.
a)
the amount of interest you are charged on credit card purchases
b)
the amount your credit limit can go up within a year
c)
how many credit cards you can own
d)
None of the above
16.
What does it mean to "get out of debt"?
a)
To pay all loans that you owe.
b)
To owe money to someone.
17.
Is it a good idea to pay only your minimum payment on a credit card?
a)
Yes - that is required
b)
No - you should pay the full balance
18.
What is the amount of money you still owe to their credit card company called?
a)
Credit Card Interest
b)
Credit Card Balance
c)
Credit Card Limit
d)
Credit Card Fee
19.
Making a credit card minimum payment:
a)
Means you are paying a small portion of your total credit card debt
b)
Is the same thing as making a late credit card payment
c)
Will have a negative effect on your credit score
d)
Will cause your credit card to be cancelled
20.
Which of the following can increase your credit card’s APR?
a)
Paying the minimum
b)
Missing a credit card payment
c)
Paying off the full balance
d)
Cashing in on rewards points
21.
The amount of money you can charge to a credit card is called:
a)
Annual Percentage Rate
b)
Balance Transfer
c)
Credit Limit
d)
Annual Fee
22.
Which has higher interest rates: a bank credit card or a merchant (store) credit card?
a)
Bank Credit Card
b)
Store Credit Card
23.
What is a credit card balance?
a)
The amount of interest you must pay the credit card company
b)
The required minimum payment to your credit card company
c)
A way to track your incoming and outgoing purchases
d)
The amount of money you still owe to the credit card company
24.
Which of the following are true if you pay only the minimum amount each month towards your credit card bill?
a)
You will be charged interest on your remaining balance.
b)
Your Annual Percentage Rate will increase.
c)
You may be in debt for a long time.
d)
You will be charged a late fee
25.
Which of the following is NOT a common credit card fee?
a)
Late fee
b)
Annual membership fee
c)
Balance transfer fee
d)
Minimum payment fee
26.
Which payment type is best if you are trying to stick to a budget?
a)
Credit Card
b)
Debit Card
c)
Cash Advance
d)
Payday loan
27.
What does it mean to be "in debt"?
a)
You owe money.
b)
You don't have any loans.
28.
Is it good to be in debt?
a)
Yes
b)
No
29.
Which of these payments requires a PIN number?
a)
Debit Card
b)
Credit Card
c)
Check
d)
Payday Loan
30.
You see two credit card options.
Option 1 has a 10% interest rate.
Option 2 has a 20% interest rate.
Which is a better choice?
Option 1 has a 10% interest rate.
Option 2 has a 20% interest rate.
Which is a better choice?
a)
Option 1
b)
Option 2
31.
Your credit card has a 20% APR. A new sofa you want costs $1000. Approximately how much will you pay for the sofa if you use your credit card?
a)
$1020
b)
$1200
c)
$20,000
d)
$120
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