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Credit Card Knowledge Quiz

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

What is the main purpose of a credit card?

a)

To store cash securely

b)

To allow purchases now and pay later

c)

To replace a debit card

d)

To withdraw cash from an ATM

2.

What does APR stand for in relation to credit cards?

a)

Annual Percentage Rate

b)

Average Payment Ratio

c)

Automated Payment Requirement

d)

Account Processing Rate

3.

Which factor has the greatest impact on your credit score?

a)

The number of credit cards you own

b)

Your payment history

c)

The amount of money in your savings account

d)

Your yearly income

4.

What happens if you only pay the minimum payment on your credit card?

a)

Your balance is paid in full

b)

You avoid paying any interest

c)

You will pay more in interest over time

d)

Your credit score increases

5.

What is a credit limit?

a)

The maximum amount you can charge on your card

b)

The amount you owe each month

c)

The amount of interest you pay

d)

The minimum amount due on your card

6.

What is the grace period on a credit card?

a)

The time between making a purchase and the transaction posting

b)

The time between the statement date and the payment due date when no interest is charged

c)

The time you have to dispute a charge

d)

The time it takes to receive a refund

7.

What happens if you exceed your credit limit?

a)

Your credit score increases

b)

The card company automatically raises your limit

c)

You may face fees or declined transactions

d)

The excess amount is erased

8.

How can you avoid paying interest on a credit card?

a)

By making only the minimum payment

b)

By paying the full balance each month

c)

By only using the card for emergencies

d)

By calling the credit card company

9.

What is a secured credit card?

a)

A credit card with no credit limit

b)

A card backed by a cash deposit

c)

A card used only for online shopping

d)

A card that doesn’t require a credit check

10.

What does a balance transfer do?

a)

Moves debt from one credit card to another

b)

Converts a credit card into a debit card

c)

Transfers funds from savings to credit

d)

Withdraws cash from your credit card

11.

What does “https” in a website URL indicate?

a)

The site is for high-traffic pages

b)

The site is secure and encrypted

c)

The site is a government website

d)

The site is an international business

12.

Which is the safest method for making online purchases?

a)

Entering your debit card information on any website

b)

Using a public Wi-Fi connection to check out

c)

Paying with a credit card on a secure website

d)

Sending cash through the mail

13.

Why should you avoid saving your credit card information on retail websites?

a)

It slows down future purchases

b)

It increases the risk of your information being stolen

c)

It makes checking out more complicated

d)

It prevents refunds from being processed

14.

What is a sign that an online shopping website might be a scam?

a)

Prices that are much lower than other retailers

b)

A professional-looking homepage

c)

A detailed return policy

d)

Multiple payment options

15.

What is the best way to verify if an online store is legitimate?

a)

Check for a padlock icon and “https” in the URL

b)

Click on random links on the site

c)

Look for pop-up ads

d)

Assume all online stores are safe

16.

What is identity theft?

a)

Losing your driver’s license

b)

When someone steals your personal information to commit fraud

c)

Forgetting your passwords

d)

Using a fake name online

17.

What is phishing?

a)

A fraudulent attempt to steal personal information through fake emails or messages

b)

A secure way to pay online

c)

A government program to catch scammers

d)

An online shopping feature

18.

Which of the following is a common red flag of a phishing scam?

a)

An email from your bank asking for account details

b)

A text from a friend

c)

A security alert from your phone

d)

A receipt from an online purchase

19.

What should you do if you receive a suspicious email asking for personal information?

a)

Click the link and follow the instructions

b)

Delete it and report it as phishing

c)

Reply with fake information

d)

Call the sender immediately

20.

Why is it dangerous to use public Wi-Fi for online shopping?

a)

It slows down your internet speed

b)

Hackers can intercept your personal information

c)

It increases your bank fees

d)

It is against the law

21.

What should you do if you suspect fraudulent activity on your credit card?

a)

Wait and see if it happens again

b)

Report it to your credit card company immediately

c)

Withdraw all your money from your account

d)

Post about it on social media

22.

What is a fraud alert?

a)

A warning issued by your bank about potential fraud

b)

A type of scam

c)

A law enforcement investigation

d)

A credit card feature

23.

How often can you check your credit report for free?

a)

Once a month

b)

Once a year

c)

Every two years

d)

Only when you apply for a loan

24.

What does Two-Factor Authentication (2FA) provide?

a)

An extra layer of security when logging in

b)

A way to access your account without a password

c)

A way to share your login details safely

d)

A password reset feature

25.

If you receive a call from someone claiming to be from the IRS demanding payment, what should you do?

a)

Provide your payment details

b)

Hang up and report the call

c)

Call them back later

d)

Follow their instructions to avoid penalties