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WorksheetsCredit
Total questions: 27
Worksheet time: 23mins
Name
Class
Date
1.
What is one characteristic of open-end credit?
a)
A down payment must be made before receiving the loan
b)
Individuals are allowed to borrow an unlimited amount of money as long as they pay it back
c)
Credit is extended in advance so the borrower does not have to apply for credit each time credit is desired
d)
Payments are equal and are required on a regular basis
2.
Amount charged if your payment is received after the billing date
a)
late payment fee
b)
overdue fee
c)
withdrawal fee
d)
loser fee
3.
Maximum amount you are allowed to carry as a balance on the card
a)
interest
b)
ARP
c)
credit line
d)
all of these
4.
This is a fee that some, but not all, credit card issuers charge to use their credit card.
a)
APR
b)
annual fee
c)
monthly fee
d)
no such thing
5.
Benefits of credit cards include:
a)
safe and convenient, bonuses are offered
b)
allows you to build a positive credit report
c)
needed for reservations and online shopping
d)
all of these
6.
The maximum amount you may borrow on a credit card is known as:
a)
creditworthiness
b)
credit report
c)
credit limit
d)
variable rate of credit
7.
Over time, people who pay off their credit card balance in full every month will pay less in interest on their credit card.
a)
true
b)
false
8.
The rate at which interest is charged on a credit card acount is expressed in terms of its:
a)
Annual Percentile Reduction
b)
Animal Population Rescue
c)
Annual Popsicle Reduction
d)
Annual Percentage Rate
9.
A plastic card that you use to access a line of pre-established credit is called:
a)
debit card
b)
credit card
c)
visa
d)
mastercard
10.
All of the following are examples or benefits of credit, EXCEPT:
a)
Increase your income
b)
Safer than cash
c)
Buying power
d)
Can tie up future income
11.
Which one is a disadvantage of having a credit card?
a)
no cash needed
b)
build your history
c)
could ruin credit history
12.
Which one is NOT a benefit of having a credit card?
a)
raises standard of living
b)
convenient
c)
interest
d)
increase financial options
13.
It is wise to compare credit card offers before choosing one
a)
True
b)
False
14.
Which of the following items can be found on a credit card statement?
a)
payments made and new charges
b)
fees and interest charged
c)
year to date totals and how long it will take you to pay it off w/minimum only
d)
all of these
15.
To build a good credit history, you should
a)
pay the minimum or more on your account each month
b)
pay on time or early
c)
be careful not to take on too much debt
d)
all of these
16.
What is your job as a borrower?
a)
To pay back your loans promptly
b)
To borrow as much as humanly possible
c)
Spend your loans and not pay them back
17.
Which of the following is an ADVANTAGE of credit?
a)
No need for carrying cash
b)
Annual Fees
c)
Interest Rates
18.
What type of credit is a credit card?
a)
Single-Payment
b)
Installment Credit
c)
Revolving Credit
19.
The least amount that must be paid on a credit card each month is
a)
Late Fee
b)
Credit Limit
c)
Payment amount
d)
Minimum Payment
20.
How can a cardholder avoid paying interest on a credit card?
a)
Do not pay anything
b)
Pay the minimum payment after its due date
c)
Pay the minimum balance every month
d)
Pay the balance in full every month
21.
The credit company can charge interest if the credit card bill is not paid in full by the due date
a)
True
b)
False
22.
It is best to pay more than the minimum due on your credit card.
a)
True
b)
False
23.
It would be best to have a high credit score
a)
True
b)
False
24.
A credit report is a report showing a borrower's history of how well they paid their bills.
a)
True
b)
False
25.
Only making the minimum payment on a credit card every month will:
a)
lower the amount total
b)
make you independently wealthy
c)
take longer to pay off which will result in paying more interest, more money!
d)
pay off the credit card faster
26.
You have a choice between two credit cards: American Express 8.99% or Chase Sapphire 12.99%. Which card offers the better rate?
a)
American Express
b)
Chase Sapphire
c)
Neither
d)
All of the above
27.
You charge $500 on each of your two credit cards. One is American Express with an interest rate of 15.99%. The other is Chase Sapphire with an interest rate of 20.99%. Assuming that you are only making the minimum payment of $25 to each of the credit card companies, which card will you pay off first
a)
Chase Sapphire
b)
American Express
c)
Interest rate does not affect your minimum payments
d)
All of the above
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