WorksheetsCREDIT CARDS AND LOANS
Total questions: 40
Worksheet time: 24mins
Name
Class
Date
1.
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.
2.
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.
3.
Why would your credit provider give you a credit limit?
a)
To remind you to pay your bill on time.
b)
To prevent you from enjoying the things you buy.
c)
To prevent you from spending more money than you can pay back.
d)
To prevent you from shopping in certain places.
4.
When you make a credit card purchase at a store, who do you agree to pay?
a)
The store.
b)
The bank where the store keeps its money.
c)
Your credit provider.
5.
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.
6.
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.
7.
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
8.
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
9.
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
10.
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.
11.
Examples of penalty fees include:
a)
over-the-limit fee
b)
late payment fee
c)
returned payment fee
d)
all of these
12.
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
13.
It is wise to compare credit card offers before choosing one
a)
True
b)
False
14.
Money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.
a)
Interest
b)
Annual Percentage Rate
c)
Credit
d)
Credit Line
15.
Having a high credit score will allow lenders to give you lower interest rates.
a)
True
b)
False
16.
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
17.
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
18.
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
19.
There’s no penalty if I pay my credit card balance after the due date.
a)
True
b)
False
20.
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
21.
Purchase is withdrawn directly from a checking or savings account.
a)
Debit card
b)
Credit card
c)
Both
22.
Each purchase is a loan that is repaid later
a)
Debit card
b)
Credit card
c)
Both
23.
You can purchase an item now and pay for it later.
a)
Debit card
b)
Credit card
c)
Both
24.
It may require a signature when making a purchase.
a)
Debit card
b)
Credit card
c)
Both
25.
Interest may be charged.
a)
Debit card
b)
Credit card
c)
Both
26.
It requires the use of a PIN when making a purchase.
a)
Debit card
b)
Credit card
c)
Both
27.
If the card is lost or stolen, report it immediately.
a)
Debit Cards
b)
Credit Cards
c)
Both
28.
A checking account is
a)
An interest bearing account where your deposit remains for a set period of time
b)
An account where money can easily be deposited and withdrawn by means of checks, debit cards and ATM transactions.
c)
A computer that checks your email account
29.
I will get a bill at the end of the month for this card
a)
Debit Card
b)
Credit Card
c)
Both
30.
More useful when you are short on cash in an emergency.
a)
Debit card
b)
Credit card
c)
Both
31.
Convenient to use.
a)
Credit
b)
Debit
c)
Both
32.
“My bill is due the 15th of every month.”
a)
Debit
b)
Credit
c)
Both
33.
“I have $360 in my checking account, so that is the most I can spend using this card.”
a)
Debit
b)
Credit
c)
Both
34.
“I just got some bonus points for free magazines for using this card.”
a)
Debit
b)
Credit
c)
Both
35.
“I had to pay an extra $80 for this television because I didn’t pay my entire bill right away.”
a)
Debit
b)
Credit
c)
Both
36.
“I don’t have any cash with me, so I’ll pay using this card.”
a)
Debit
b)
Credit
c)
Both
37.
“I had to sign my receipt when I used this card.”
a)
Debit
b)
Credit
c)
Both
38.
“I want to pay for these groceries right now instead of getting a bill in the mail later this month.”
a)
Debit
b)
Credit
c)
Both
39.
“This is just like using a check, except I don’t have to carry my checkbook with me everywhere I go.”
a)
Debit
b)
Credit
c)
Both
40.
“I paid for my online purchase using this card.”
a)
Debit
b)
Credit
c)
Both
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