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WorksheetsStandard 8 & 9 Credit Cards and Online Shopping, and Fraud
Total questions: 33
Worksheet time: 8hrs 15mins
Before getting a credit card, it is important to
ask about the interest rate.
find out what incentives it offers.
read the fine print to understand the terms.
ask about the color of the card or the images on it.
Credit cards are classified as revolving credit, which means
you can use the amount for which you are approved.
you can use it for purchases as long as you are earning points.
your payments revolve around how much you charge each month.
your payments will be the same each month, regardless of your balance.
A credit card
is basically the same as a charge card; both allow you to make monthly payments.
differs from both a charge card or a debit card because it is more convenient to use.
is basically the same as a debit card; both withdraw funds from your checking account.
differs from both a charge card or a debit card because it allows you to making monthly payments on your balance.
Which of the following statement is BAD advice for a credit card user?
Read your statement carefully each month to see if it contains any errors.
If you cannot make a payment when the bill arrives, just wait until next month.
Save all monthly receipts so you can match it with the charges on your monthly statement.
If you can only make minimum payments on your credit cards, it indicates you are spending more than you can afford to spend.
The minimum payment on your statement indicates the
least amount you can pay without additional late fees.
amount the credit card company expects you to pay.
amount you are required to pay.
amount you should pay each month.
Credit card companies can change interest rates on their cards only if you
have missed a payment.
charge more than the limit.
are notified in advance.
make the minimum payments.
The process for disputing an incorrect charge on your statement
is explained on the back of your credit card.
requires a phone call to the credit card company.
is explained on the back of your monthly statement.
requires you to pay the bill first, then request a refund.
If you get a credit card with a special introductory low interest rate,
your rate will always increase within six months.
you should charge as much as possible because the rate is low.
your card guarantees you that rate as long as you make your payments on time.
you should read the agreement carefully to see what happens when the offer expires.
Which of the following is a benefit to using a credit card instead of paying with cash?
It is safer to carry a credit card than to carry cash.
It is cheaper to buy on credit than to pay with cash.
You can take as long as you want to pay off your purchase
You can spend as much as you want with a credit card; you are limited with cash.
When buying a product online,
only use PayPal or other similar payment systems.
call the seller to see if they will give you a cash discount.
use a credit card or charge card for increased protection.
send the seller a check because someone could steal your credit card number.
The “s” in https indicates you are using a ________________ Web site.
superfast
secure
state-approved
seller's
After completing an online purchase, be sure to
call the seller to be sure they got your order.
print off a copy of your receipt and order number.
exit the Web site quickly so your purchase cannot be tracked.
visit a local merchant to see if they can beat the deal you got online.
Which of the following statements is TRUE?
Buying online is always a better deal that buying from a local merchant.
Buying from a local merchant is always a better deal than buying online.
You can save time and money by comparison shopping online and locally before making a purchase.
You cannot save time and money by comparison shopping online and locally before making a purchase.
Whether buying online or buying from a local merchant, always
use a credit card.
pay the lowest price.
buy from a reputable company.
withhold your payment until you are satisfied with the product.
All of the following are good reasons to buy locally EXCEPT you
have more selection.
can have the product immediately.
can see and feel the product before buying.
have more opportunities to negotiate the price.
When shopping online,
order where you can get the cheapest price.
if the seller puts something in writing, it has to be true.
check out the merchant’s security policy before ordering.
do not worry about comparing shipping charges; all online merchants charge the same.
All of the following are benefits to buying online EXCEPT you
do not have to fight the traffic or look for a parking space.
must rely on the description given.
have a greater selection of products available.
can shop 24/7 because the stores never close.
A recent study by the Pew Research Center shows that
most people are satisfied with their online purchases.
fewer than 1 in 10 online customers are actually buying products online.
about 2/3 of those who use Internet have made an online purchase.
most people only use the Internet to comparison shop.
Using a person’s name or personal information without permission to make purchases or get loans is called
fraud.
acting.
identity theft.
impersonation.
Bargain City advertises a special price on a certain type of roller blades. They really do not have those roller blades in the store. Instead, they have a much more expensive brand to sell you at double the advertised price. This practice is called
fraud and hook.
illegal advertising.
bait and switch.
false advertising.
You are invited to invest in a birthday club. Once a month, the club meets to celebrate those with birthdays that month. You are required to pay $1,000 to join the club, and you are promised to receive $500 for every person you get to join the club. What should you do?
Do not join. You do not know enough people who have $500 to invest.
Go for it. Your best friend invited you to join, so it must be a good deal.
Go for it. You only need to get two people to join, and you get your money back.
Do not join. This is a Ponzi Scheme, and you will probably lose all of your money.
If someone comes to your door offering you a great opportunity to invest in a new company, you should
listen to their sales pitch to see if it is legitimate.
tell them you are not interested and ask them to leave.
listen to their sales pitch even though you are not interested.
sign up for the investment and call your friends so they can invest too.
People who attempt to swindle or trick you into illegal schemes are commonly called
schemers.
con artists.
film flames.
embezzlers.
If you become the victim of fraud or identity theft, you should
have a good laugh because it happens to everyone.
call the police immediately and report what happened.
contact the person or persons involved and tell them to stop.
keep quit about it because you made a bad choice and it is your fault.
“Dumpster Diving” refers to the practice of
going through someone’s trash to find any hidden treasures.
a new video game where you race dumpsters through a junk yard.
going through someone’s trash looking for personal information on it.
throwing a prize in a dumpster, then everyone jumps in to see who can
find it first.
Which of the following steps would help reduce your potential of being a victim of consumer fraud?
Delete all e-mails asking for personal information without responding to them.
Go along with a scheme so you get more information and then report it to local law enforcement officials.
If you get a special offer in the mail, send cash so they cannot get your personal information from a check or credit card.
Give your best friends your personal information, like your Social
Security number and bank account number(s), in case anything happens to you.
_______________ is a legal term used when someone knowingly deceives you for their own personal gain.
Fraud
Phishing
Scheming
Identity Theft
The MOST secure password for Internet or other uses should include
your first name or birthday.
a series of letters than mean nothing.
your Social Security number.
a combination of numbers and letters.
Which of the following is NOT a good way to protect yourself from being a fraud victim?
Enter your personal information on a Web site so you can get more information before deciding on an investment.
Take time to do careful research before giving money or personal information.
Avoid letting emotions interfere with financial decisions.
Get all information in writing before giving money or personal information.
Setting up a false company only to ask people to buy stock in it is called
security fraud.
investment fraud.
long firm fraud.
firm fraud.
One of the BEST ways to protect yourself from identity theft is
keeping your Social Security card in your billfold.
shredding all papers with personal information.
throwing away all credit card offers without opening them.
using your Social Security number as your driver’s license or ID number.
Recent changes in legislation now allow you to get a copy of your credit report
for a small fee once a year to check for ID theft.
for a small fee every other year to check for its accuracy.
free of charge once a year to check its accuracy.
free of charge as often as you need one.
If you think you are a victim of fraud, you should contact
an attorney to sue the three credit bureaus for giving out your personal information.
the Fraud Division of the three credit bureaus to request a fraud alert on your files.
the Fraud Division of the Federal Trade Commission to request they mark your files with a fraud alert.
the three credit bureaus to request they suspend all activity in your file until the problem is resolved.
