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Check Your Understanding - Credit Cards

Total questions: 8

Worksheet time: 4mins

Name
Class
Date
1.

True or False: One or more major credit cards are usually accepted at any store or company.

a)

True

b)

False

2.

True or False: The average daily balance method of calculating interest is based on the opening balance of the account for the previous month.

a)

True

b)

False

3.

True or False: The annual fee for a credit card is set by the government.

a)

True

b)

False

4.

True or False: APR measures the interest rate charged by a credit card.

a)

True

b)

False

5.

True or False: You have 60 days to dispute a charge on your credit card.

a)

True

b)

False

6.

Comparing the APR among several credit cards allows you to obtain the:

a)

lowest grace period

b)

lowest annual fee

c)

lowest interest rate

d)

least expensive method of calculating interest

7.

The grace period refers to the time:

a)

taken to process a credit card application

b)

for paying an account without an interest charge

c)

allowed to notify a creditor of a billing error

d)

used for calculating interest

8.

The 20-10 Rule is:

a)

a method used for measuring what you borrow and what you pay.

b)

a way to calculate your annual interest rate.

c)

a way to measure your APR.

d)

a way credit card lenders calculate if you should be approved for a credit card.