WorksheetsOpen Credit
Total questions: 15
Worksheet time: 8mins
1. What is the most common form of open credit?
A. Loans
B. Credit Cards
C. Mortgages
D. Car Loans
2. What is the primary difference between open credit and closed-end credit?
A. Open credit can be used for specific purchases only.
B. Closed-end credit allows users to borrow repeatedly, open credit does not.
C. Open credit is revolving, meaning you can borrow, repay, and borrow again within a set limit.
D. Closed-end credit has higher interest rates than open credit.
3. What is the APR (Annual Percentage Rate)?
A. The maximum borrowing limit on a credit card.
B. The amount of time allowed to pay without interest.
C. The interest charged on your balance annually.
D. A fee for being late on payments.
Credit cards allow users to borrow money for purchases and pay it back later, usually with interest.
TRUE
FALSE
5. Which of the following is NOT a benefit of using a credit card?
A. Builds credit history
B. Offers rewards like cashback and points
C. Reduces your monthly payment
D. Convenient for budgeting
6. What is the term for the smallest amount you can pay on your credit card bill to keep your account active?
A. Grace period
B. APR
C. Minimum payment
D. Over-limit fee
Paying only the minimum balance on a credit card can lead to growing debt due to high-interest rates.
TRUE
FALSE
8. Which of the following credit card types is issued by a bank?
A. Visa
B. SM Advantage
C. Ayala Malls Card
D. Citibank Rewards Card
9. What is the best way to avoid finance charges on a credit card?
A. Pay the minimum payment each month
B. Carry a balance for several months
C. Pay the full balance by the due date
D. Make only partial payments
10. What does the Fair Credit Billing Act protect consumers from?
A. Fraudulent charges and billing errors
B. High-interest rates
C. Annual fees
D. Over-limit fees
The FICO score is used by lenders to determine the terms of loans and credit.
TRUE
FALSE
12. What is the interest rate range for most credit cards in the Philippines?
A. 0.5% to 1.5% monthly
B. 3.5% to 4% monthly
C. 5% to 6% monthly
D. 7% to 8% monthly
13. What is a benefit of using a credit card like the UnionBank Cashback card?
A. Free cash advances
B. 1% cashback on all purchases
C. Higher APR
D. No annual fees
The CARD Act of 2009 allows credit card companies to increase interest rates without providing adequate notice.
TRUE
FALSE
15. What does the BSP Circular No. 799 (2009) mandate regarding payments on credit cards in the Philippines?
A. Credit card payments must be paid in full every month.
B. Credit card issuers must provide a 14-day grace period for interest-free payments.
C. Credit card interest rates must be lower than 2% per month.
D. Credit cards cannot have annual fees.
