Question 1

On a credit card, a finance charge is applied to

Accepted Answer

A)  any purchase. 
B)  any balance not previously paid. 
C)  current purchases. 
D)  future purchases. 
A)  any purchase. 
B)  any balance not previously paid. 
C)  current purchases. 
D)  future purchases.

Question 2

Cards that are purchased at retail establishments and loaded with funds that you provide are called ________.

Accepted Answer

The answer of Cards that are purchased at retail establishments...

Question 3

For good financial management, you should treat a credit card as

Accepted Answer

A)  a source of funds. 
B)  a means of convenience. 
C)  a way to finance everything. 
D)  an inexpensive form of financing. 
A)  a source of funds. 
B)  a means of convenience. 
C)  a way to finance everything. 
D)  an inexpensive form of financing.

Question 4

Credit has its advantages and disadvantages. Which of the following is false?

Accepted Answer

A)  Credit cards should be used with discipline. 
B)  You should spend up to the limit on all your credit cards. 
C)  Cash advances are available through a credit card. 
D)  Bankruptcy is the worst-case scenario from poor credit management. 
A)  Credit cards should be used with discipline. 
B)  You should spend up to the limit on all your credit cards. 
C)  Cash advances are available through a credit card. 
D)  Bankruptcy is the worst-case scenario from poor credit management.

Question 5

Credit cards are commonly used to pay for items such as investments, home down payments, or a new car.

Accepted Answer

A) True 
 B)False

Question 6

As of November 14, Ben has an outstanding credit card balance of $1,100 from purchases made over the past month. The new billing period begins on November 15. Assume Ben's outstanding balance for the first 15 days of this new billing period (Nov. 15-29) is $1,100. Then on November 29, the financial institution receives a payment of $600 from Ben, reducing his balance to $500. This is the balance for the remaining 15 days. Using the previous balance method and a monthly interest rate of 2.5%, Ben's finance charge would be

Accepted Answer

A)  $15.00. 
B)  $12.50. 
C)  $27.50. 
D)  $20.00. 
A)  $15.00. 
B)  $12.50. 
C)  $27.50. 
D)  $20.00.

Question 7

An alternative to MasterCard, Visa, and American Express credit cards is a retail or proprietary card that is issued for use at a specific retail establishment.

Accepted Answer

A) True 
 B)False

Question 8

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. 
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 9

Which of the following is not true about annual fees on credit cards?

Accepted Answer

A)  The fees are the same on all credit cards. 
B)  The fees may be high, amounting to several hundred dollars per year for some prestige cards. 
C)  Many cards do not have annual fees. 
D)  Some cards may waive the fees for individuals who pay their credit card bills in a timely manner. 
A)  The fees are the same on all credit cards. 
B)  The fees may be high, amounting to several hundred dollars per year for some prestige cards. 
C)  Many cards do not have annual fees. 
D)  Some cards may waive the fees for individuals who pay their credit card bills in a timely manner.

Question 10

You should cancel any credit card that is not sponsored by a company that sells necessities.

Accepted Answer

A) True 
 B)False

Question 11

Financial institutions issuing MasterCard and Visa credit cards typically charge a high rate of interest on the credit extended.

Accepted Answer

A) True 
 B)False

Question 12

If you include all fees charged by a lender and the simple interest rate, the result will be the ________.

Accepted Answer

annual per

Question 13

It is a good practice to review your credit card statement online as often as daily or weekly in order to

Accepted Answer

A)  make sure there are no fraudulent charges. 
B)  make sure there are no duplicate or erroneous charges from merchants. 
C)  monitor your spending patterns. 
D)  A, B and C are all correct. 
A)  make sure there are no fraudulent charges. 
B)  make sure there are no duplicate or erroneous charges from merchants. 
C)  monitor your spending patterns. 
D)  A, B and C are all correct.

Question 14

APR means

Accepted Answer

A)  actual percentage rate. 
B)  applied percentage rate. 
C)  annual percentage rate. 
D)  all-banks percentage rate. 
A)  actual percentage rate. 
B)  applied percentage rate. 
C)  annual percentage rate. 
D)  all-banks percentage rate.

Question 15

Your credit card statement must state how long it will take you to pay off the existing balance due when paying only the minimum amount each month.

Accepted Answer

A) True 
 B)False

Question 16

In comparing credit cards, which of the following is false?

Accepted Answer

A)  Some cards are more widely accepted than others. 
B)  Some cards offer a teaser interest rate. 
C)  Some cards charge an annual fee and others do not. 
D)  Some cards allow you to always carry a balance from month-to-month with no interest. 
A)  Some cards are more widely accepted than others. 
B)  Some cards offer a teaser interest rate. 
C)  Some cards charge an annual fee and others do not. 
D)  Some cards allow you to always carry a balance from month-to-month with no interest.

Question 17

Describe the availability of credit today for a person younger than 21 years of age. Do you get credit card offers in the mail and are discounts available when signing up for a proprietary credit card?

Accepted Answer

The Credit CARD Act of 2009 made it more

Question 18

In comparing credit cards to other forms of credit, which of the following is false?

Accepted Answer

A)  Credit cards are generally the most expensive form of credit. 
B)  You should pay the most expensive debt off first. 
C)  Credit cards can be viewed as a source of income. 
D)  A home equity loan can be used to consolidate credit card and other debt. 
A)  Credit cards are generally the most expensive form of credit. 
B)  You should pay the most expensive debt off first. 
C)  Credit cards can be viewed as a source of income. 
D)  A home equity loan can be used to consolidate credit card and other debt.

Question 19

Which of the following is not a method for computing interest on credit cards?

Accepted Answer

A)  Previous balance method 
B)  Average daily balance method 
C)  Present value of future payment method 
D)  Adjusted balance method 
A)  Previous balance method 
B)  Average daily balance method 
C)  Present value of future payment method 
D)  Adjusted balance method

Question 20

On your credit card statement, the amount that you owe the financial institution now is called the

Accepted Answer

A)  previous balance. 
B)  minimum payment. 
C)  new balance. 
D)  payments. 
A)  previous balance. 
B)  minimum payment. 
C)  new balance. 
D)  payments.

On a credit card, a finance charge is applied to

Cards that are purchased at retail establishments and loaded with funds that you provide are called ________.

For good financial management, you should treat a credit card as

Credit has its advantages and disadvantages. Which of the following is false?

Credit cards are commonly used to pay for items such as investments, home down payments, or a new car.

An alternative to MasterCard, Visa, and American Express credit cards is a retail or proprietary card that is issued for use at a specific retail establishment.

Cash advances are

Which of the following is not true about annual fees on credit cards?

You should cancel any credit card that is not sponsored by a company that sells necessities.

Financial institutions issuing MasterCard and Visa credit cards typically charge a high rate of interest on the credit extended.

If you include all fees charged by a lender and the simple interest rate, the result will be the ________.

It is a good practice to review your credit card statement online as often as daily or weekly in order to

APR means

Your credit card statement must state how long it will take you to pay off the existing balance due when paying only the minimum amount each month.

In comparing credit cards, which of the following is false?

Describe the availability of credit today for a person younger than 21 years of age. Do you get credit card offers in the mail and are discounts available when signing up for a proprietary credit card?

In comparing credit cards to other forms of credit, which of the following is false?

Which of the following is not a method for computing interest on credit cards?

On your credit card statement, the amount that you owe the financial institution now is called the

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

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Exam 8: Managing Your Credit

On a credit card, a finance charge is applied to

Cards that are purchased at retail establishments and loaded with funds that you provide are called ________.

For good financial management, you should treat a credit card as

Credit has its advantages and disadvantages. Which of the following is false?

Credit cards are commonly used to pay for items such as investments, home down payments, or a new car.

An alternative to MasterCard, Visa, and American Express credit cards is a retail or proprietary card that is issued for use at a specific retail establishment.

Cash advances are

Which of the following is not true about annual fees on credit cards?

You should cancel any credit card that is not sponsored by a company that sells necessities.

Financial institutions issuing MasterCard and Visa credit cards typically charge a high rate of interest on the credit extended.

If you include all fees charged by a lender and the simple interest rate, the result will be the ________.

It is a good practice to review your credit card statement online as often as daily or weekly in order to

APR means

Your credit card statement must state how long it will take you to pay off the existing balance due when paying only the minimum amount each month.

In comparing credit cards, which of the following is false?

Describe the availability of credit today for a person younger than 21 years of age. Do you get credit card offers in the mail and are discounts available when signing up for a proprietary credit card?

In comparing credit cards to other forms of credit, which of the following is false?

Which of the following is not a method for computing interest on credit cards?

On your credit card statement, the amount that you owe the financial institution now is called the

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

Filters