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WorksheetsBuying Decisions & Credit Cards
Total questions: 41
Worksheet time: 29mins
Name
Class
Date
1.
Buying a snack
a)
Impulse Buying Decision
b)
Routine Buying Decision
c)
Limited Buying Decision
d)
Extensive Buying Decision
2.
Looking for the perfect new car
a)
Impulse Buying Decision
b)
Routine Buying Decision
c)
Limited Buying Decision
d)
Extensive Buying Decision
3.
Which of the following is NOT an incentive used by stores to encourage people to shop there.
a)
Store Money
b)
Hiking prices
c)
Discount Coupons
d)
Point Cards
4.
The cost of credit expressed as a yearly interest rate is known as:
a)
Annual Percentage Rate (APR)
b)
Annual Fee
c)
Penalty APR
d)
Introductory Rate
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.
What is an annual fee?
a)
The act of transferring money
b)
A fee charged by a card issuer for being a card holder.
c)
The days between the last statement and the current statement.
d)
A fee charged to a cardholder's account once a payment is late.
8.
Examples of penalty fees include:
a)
over-the-limit fee
b)
late payment fee
c)
returned payment fee
d)
all of these
9.
How can you avoid paying interest fees on your credit card?
a)
Only use it for groceries
b)
pay off the full balance, on time, each month
c)
you cannot avoid interest fees
d)
only use Discover
10.
It is wise to compare credit card offers before choosing one
a)
True
b)
False
11.
The cost of borrowing money is referred to as
a)
Interest
b)
Annual Percentage Rate
c)
Credit
d)
Credit Line
12.
Paying the minimum payment on a credit card every month will:
a)
Pay a large percentage of the total balance owed every month
b)
Make the final amount paid substantially higher than the amount initially charged to the card
c)
help the cardholder create a plan for paying of a credit card in a decent amount of time
d)
allow the cardholder to avoid paying any interest charges
13.
Having a high credit score will allow lenders to give you lower interest rates.
a)
True
b)
False
14.
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
15.
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
16.
There’s no penalty if I pay my credit card balance after the due date.
a)
True
b)
False
17.
What is a good practice when it comes to credit cards?
a)
getting as many credit cards as possible
b)
paying only the minimum
c)
charging anything you want
d)
paying the amount charged in full each month
18.
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.
19.
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.
20.
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.
21.
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
22.
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.
23.
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.
24.
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
25.
What type of credit is a credit card?
a)
Single-Payment
b)
Installment Credit
c)
Revolving Credit
26.
What does APR mean?
a)
Average Person Ratio
b)
Annual Percentage Rate
c)
Always Poke Robots
d)
Apples Peas & Rice
27.
Each purchase is a loan that is repaid later.
a)
Debit Card
b)
Credit Card
28.
What is credit?
a)
Money allocated to a specific account for future use by the consumer without borrowing
b)
Goods, services, or money received in exchange for a promise to pay a definite sum of money at a future date
c)
The ability and willingness of an individual to pay back a loan as perceived by the lender
d)
An individual’s character, capital, capacity, collateral and conditions
29.
Amount charged if your payment is received after the billing date
a)
late payment fee
b)
overdue fee
c)
withdrawal fee
d)
loser fee
30.
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
31.
The amount based on the percentage of the outstanding balance, or a minimum fixed amount
a)
minimum monthly fee
b)
minimum monthly payment
c)
minimum monthly statement
d)
minimum monthly charge
32.
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
33.
Which one is considered dangers of credit card
a)
no cash needed
b)
lead to over spending
34.
The simple interest formula is I=Prt. What does the t represent?
a)
Principle
b)
Interest
c)
Time, in hours
d)
Time, in years
35.
Convert 18 months to years.
a)
18 Years
b)
1.5 Years
c)
.18 Years
d)
You cannot change it to years.
36.
Write the decimal as a percent.
0.37
0.37
a)
37%
b)
3.7%
c)
.37%
37.
What does the "r" in the interest formula stand for?
a)
Principal
b)
Interest
c)
rate
d)
time
38.
The Principal and Interest are always___________.
a)
fraction
b)
decimal
c)
percent
d)
money
39.
The rate is given as a percent (%). Before using it in the simple interest formula, you must first convert it to a______.
a)
fraction
b)
decimal
c)
ratio
d)
dollar amount
40.
The simple interest formula is I=Prt. The P represents the principle. The principle is ___________________.
a)
the amount of money borrowed or deposited
b)
the percent interest for his year
c)
the amount taxed
d)
the amount the bank owes you for being a customer at their bank
41.
If you are calculating the simple interest and you are given the time in months, how can you find the time in years?
a)
Add 12 to the months
b)
divide the months by 12
c)
multiply 12 times the months
d)
You cannot change it to months.
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