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WorksheetsChapter 6 & 7 Quiz
Total questions: 10
Worksheet time: 10mins
Which of the following is an appropriate reason for using credit?
To enjoy the grace period of 21 days on new credit card purchases
To spend more money than what is possible
To take care of the future
To achieve financial freedom
Negative aspects of using credit include which of the following?
The use of credit allows you to own expensive products sooner
The use of credit results in the loss of financial flexibility in personal money management
The use of credit often leads to overspending
Negative aspects of using credit include both loss of financial flexibility as well as overspending
The ____ the APR, the ____ the true cost of the credit:
lower; higher
lower; lower
higher; lower
none of these
Credit bureaus compile information from:
Banks
Creditors
Court records
All of these
The most well-known of the many different types of credit scores used by lenders today is the:
FICO score
Vantage score
Experian score
TransUnion score
To ensure your credit card privacy and fight identity theft, which of the following is recommended?
Review your credit bureau report at least once a year
Cancel all credit card accounts
Write your driver's license number on charge slips
All of these
Credit card costs can include:
Annual fees
Interest
Transaction fees
All of these
Miako has just applied for a credit card that offers a 1.9 percent interest rate for 12 months. At the end of 12 months, the interest rate will be "prime plus 9 percent." Which of the following characteristics does this card have?
Variable interest rates
Teaser rates
Co-branded
Both variable interest rates and teaser rates
Your credit card liability for fraudulent usage of your lost or stolen credit card is limited to $____ if you report the loss after 2 business days
$0
$50
$500
unlimited
Under the Fair Credit Billing Act, you must make billing error complaints ____ to protect your legal rights
In person
within 60 days after the first bill containing the error was mailed to you
over the telephone
both over the telephone and within 60 days after the first bill containing the error was mailed to you
