Question 1

A credit card whose interest rate changes as a specific market interest rate changes is said to have a

Accepted Answer

A)   variable rate.
B)   fixed rate.
C)   constant rate.
D)   tiered rate.

Question 2

Cash advances are

Accepted Answer

A)   a good way to finance your purchases.
B)   cheaper than a line of credit.
C)   not shown on the credit card statement.
D)   easy to obtain at an ATM.

Question 3

If you have credit problems,you should contact a credit repair service instead of trying to resolve the issues yourself.

Accepted Answer

A) True 
 B)False

Question 4

If you discover an error on your credit card statement,you should not pay any portion of the balance until the matter has been resolved.

Accepted Answer

A) True 
 B)False

Question 5

Of the three methods by which finance charges may be calculated on outstanding credit card balances,the least favorable to the cardholder is the ________ balance method.

Accepted Answer

The answer of Of the three methods by which finance...

Question 6

All of the following are provisions of the Credit CARD Act of 2009 except

Accepted Answer

A)   cardholders must be given at least 21 days from the day in which the bill is mailed to make a payment.
B)   cardholders younger than age 21 must show proof of their income or have a co-signer.
C)   cardholders can spend beyond the limit imposed on the credit card.
D)   promotional interest rates must be offered for a period of at least six months.

Question 7

Discuss how many credit cards you think you should have and why.

Accepted Answer

Subjective answer ranging from...

Question 8

By reviewing your credit card statement,you can determine all of the following except

Accepted Answer

A)   total purchases made year-to-date.
B)   your available credit remaining.
C)   if a payment can be made that will avoid interest charges.
D)   how much time you have to make a payment.

Question 9

Use the following two columns of items to answer the matching questions below:
-credit card

Accepted Answer

A)  time allowed without interest before the payment is due
B)  allows you to make purchases beyond your stated credit limit for a fee
C)  credit card good only with a particular merchant
D)  the maximum amount allowed to charge
E)  a card that allows for purchases to be paid for at a later dateF) cards that offer extra benefits and are available to persons with high incomes and exceptional credit historiesG) cash borrowed on a credit card

Question 10

Use the following two columns of items to answer the matching questions below:
-prestige cards

Accepted Answer

A)  time allowed without interest before the payment is due
B)  allows you to make purchases beyond your stated credit limit for a fee
C)  credit card good only with a particular merchant
D)  the maximum amount allowed to charge
E)  a card that allows for purchases to be paid for at a later dateF) cards that offer extra benefits and are available to persons with high incomes and exceptional credit historiesG) cash borrowed on a credit card

Question 11

When applying for a credit card,the amount of savings that you have will not be a factor in the credit card company's decision.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not true regarding payroll cards?

Accepted Answer

A)   The employer can require employees to accept their wages on these cards.
B)   Employers use payroll cards because they are cheaper than issuing payroll checks.
C)   Fees are frequently associated with the cards.
D)   The cards are convenient for employees who lack bank accounts.

Question 13

Which of the following is not correct about cash advances?

Accepted Answer

A)   There is no grace period for cash advances.
B)   The interest rate for cash advances is higher than for purchases.
C)   A cash advance is like a loan.
D)   A transaction fee of 5% may be charged.

Question 14

What is the interest cost and the total amount due on a six-month loan of $1,500 at 13.2% simple annual interest?

Accepted Answer

A)   $99; $1,500
B)   $99; $1,599
C)   $198; $1,698
D)   $198; $1,500

Question 15

"Wise" use of credit cards includes the following behaviors

Accepted Answer

A)   tracking your purchases.
B)   paying off the entire card balance monthly to avoid interest charges.
C)   using credit if you find something "you just have to have."
D)   Both A and B are correct.

Question 16

MasterCard,Visa,and American Express credit cards all allow you to pay only a portion of your amount due and finance the remainder from month to month.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following methods of calculating finance charges on credit cards is least favorable to the cardholder?

Accepted Answer

A)   Previous balance method
B)   Ending balance method
C)   Average daily balance method
D)   Adjusted balance method

Question 18

John is considering pursuing one of two credit cards.Credit card "A" has no annual fee and charges an interest rate of 12.5%.Credit card "B" has an annual fee of $45 but charges an interest rate of 9%.If John is likely to have an average credit card balance of $2,000,the lowest annual expenses John could have with one of these two cards would be

Accepted Answer

A)   $225.
B)   $180.
C)   $250.
D)   $240.

Question 19

The ________ method charges interest based on the balance at the beginning of the new billing period.

Accepted Answer

A)   new cycle
B)   adjusted balance
C)   average daily balance
D)   previous balance

Question 20

Sandy had a beginning balance on her MasterCard statement of $300.This month she had purchases of $400,payments of $300,and a $100 cash advance.To avoid interest charges,Sandy must make a payment of

Accepted Answer

A)   $400.
B)   $500.
C)   $100.
D)   Sandy cannot avoid interest charges.

Exam 8: Managing Your Credit

MasterCard,Visa,and American Express credit cards all allow you to pay only a portion of your amount due and finance the remainder from month to month.

Correct Answer
verified

Cash advances are

Correct Answer
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Which of the following methods of calculating finance charges on credit cards is least favorable to the cardholder?

Correct Answer
verified

Use the following two columns of items to answer the matching questions below: -prestige cards

Correct Answer
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What is the interest cost and the total amount due on a six-month loan of $1,500 at 13.2% simple annual interest?

Correct Answer
verified

Use the following two columns of items to answer the matching questions below: -credit card

Correct Answer
verified

A credit card whose interest rate changes as a specific market interest rate changes is said to have a

Correct Answer
verified

Which of the following is not true regarding payroll cards?

Correct Answer
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If you have credit problems,you should contact a credit repair service instead of trying to resolve the issues yourself.

Correct Answer
verified

If you discover an error on your credit card statement,you should not pay any portion of the balance until the matter has been resolved.

Correct Answer
verified

Correct Answer
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Of the three methods by which finance charges may be calculated on outstanding credit card balances,the least favorable to the cardholder is the ________ balance method.

Correct Answer
verified

Discuss how many credit cards you think you should have and why.

Correct Answer
verified
Subjective answer ranging from...
View Answer

When applying for a credit card,the amount of savings that you have will not be a factor in the credit card company's decision.

Correct Answer
verified

All of the following are provisions of the Credit CARD Act of 2009 except

Correct Answer
verified

By reviewing your credit card statement,you can determine all of the following except

Correct Answer
verified

Sandy had a beginning balance on her MasterCard statement of $300.This month she had purchases of $400,payments of $300,and a $100 cash advance.To avoid interest charges,Sandy must make a payment of

Correct Answer
verified

The ________ method charges interest based on the balance at the beginning of the new billing period.

Correct Answer
verified

"Wise" use of credit cards includes the following behaviors

Correct Answer
verified

Which of the following is not correct about cash advances?

Correct Answer
verified

Exam 8: Managing Your Credit

MasterCard,Visa,and American Express credit cards all allow you to pay only a portion of your amount due and finance the remainder from month to month.

Correct AnswerverifiedShow Answer

Cash advances are

Correct AnswerverifiedShow Answer

Which of the following methods of calculating finance charges on credit cards is least favorable to the cardholder?

Correct AnswerverifiedShow Answer

Use the following two columns of items to answer the matching questions below: -prestige cards

Correct AnswerverifiedShow Answer

What is the interest cost and the total amount due on a six-month loan of $1,500 at 13.2% simple annual interest?

Correct AnswerverifiedShow Answer

Use the following two columns of items to answer the matching questions below: -credit card

Correct AnswerverifiedShow Answer

A credit card whose interest rate changes as a specific market interest rate changes is said to have a

Correct AnswerverifiedShow Answer

Which of the following is not true regarding payroll cards?

Correct AnswerverifiedShow Answer

If you have credit problems,you should contact a credit repair service instead of trying to resolve the issues yourself.

Correct AnswerverifiedShow Answer

If you discover an error on your credit card statement,you should not pay any portion of the balance until the matter has been resolved.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Of the three methods by which finance charges may be calculated on outstanding credit card balances,the least favorable to the cardholder is the ________ balance method.

Correct AnswerverifiedShow Answer

Discuss how many credit cards you think you should have and why.

Correct AnswerverifiedSubjective answer ranging from...View AnswerShow Answer

When applying for a credit card,the amount of savings that you have will not be a factor in the credit card company's decision.

Correct AnswerverifiedShow Answer

All of the following are provisions of the Credit CARD Act of 2009 except

Correct AnswerverifiedShow Answer

By reviewing your credit card statement,you can determine all of the following except

Correct AnswerverifiedShow Answer

Sandy had a beginning balance on her MasterCard statement of $300.This month she had purchases of $400,payments of $300,and a $100 cash advance.To avoid interest charges,Sandy must make a payment of

Correct AnswerverifiedShow Answer

The ________ method charges interest based on the balance at the beginning of the new billing period.

Correct AnswerverifiedShow Answer

"Wise" use of credit cards includes the following behaviors

Correct AnswerverifiedShow Answer

Which of the following is not correct about cash advances?

Correct AnswerverifiedShow Answer

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Correct Answer
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Correct Answer
verified
Subjective answer ranging from...
View Answer

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Correct Answer
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