Question 1

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. 
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 2

Credit cards with a tiered interest rate charge cardholders who

Accepted Answer

A) carry large balances a lower rate. 
B) pay off their balance monthly a higher rate. 
C) make early payments a higher rate. 
D) make late payments a higher rate. 
A) carry large balances a lower rate. 
B) pay off their balance monthly a higher rate. 
C) make early payments a higher rate. 
D) make late payments a higher rate.

Question 3

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

Question 4

If you have an exceptional credit standing,the company issuing your credit card may upgrade you to what are called ________.

Accepted Answer

The answer of If you have an exceptional credit standing,the...

Question 5

The ________ is usually about 20 days after the credit card statement is closed.

Accepted Answer

The answer of The ________ is usually about 20 days...

Question 6

Which credit card requires full payment each month?

Accepted Answer

A) MasterCard 
B) Visa 
C) American Express 
D) A proprietary card 
A) MasterCard 
B) Visa 
C) American Express 
D) A proprietary card

Question 7

The annual percentage rate (APR)is useful because it allows you to easily compare financing costs among various possible creditors.

Accepted Answer

A) True 
 B)False

Question 8

A disadvantage to credit cards is that there is no way to keep track of individual expenditures.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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 funds. 
D) A home equity loan is a way of combining 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 funds. 
D) A home equity loan is a way of combining credit card and other debt.

Question 11

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 percent may be charged. 
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 percent may be charged.

Question 12

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

Question 13

A credit card statement does not contain which of the following?

Accepted Answer

A) Previous balance 
B) Current balance 
C) Account number 
D) Who purchased the item 
A) Previous balance 
B) Current balance 
C) Account number 
D) Who purchased the item

Question 14

Which of the following is not true regarding cash advances on credit cards?

Accepted Answer

A) They are treated just like other charges on your credit card. 
B) There is a charge for interest from the time you take the advance to the time you pay it off. 
C) There is also a transaction fee on most cash advances. 
D) The grace period does not apply to cash advances. 
A) They are treated just like other charges on your credit card. 
B) There is a charge for interest from the time you take the advance to the time you pay it off. 
C) There is also a transaction fee on most cash advances. 
D) The grace period does not apply to cash advances.

Question 15

Credit cards are generally used for such purchases as

Accepted Answer

A) cars. 
B) homes. 
C) meals,clothing,and groceries. 
D) stocks. 
A) cars. 
B) homes. 
C) meals,clothing,and groceries. 
D) stocks.

Question 16

You are considering applying for one of two credit cards.Credit card "A" has an annual fee of $30 and charges interest of 10 percent.Credit card "B" has no annual fee,but charges an interest rate of 15 percent.If you carry an average balance of $500 on your credit card,the lowest total annual expenses you could have with one of these two credit cards would be:
(a)$50
(b)$80
(c)$75
(d)$90

Accepted Answer

Card "A" $500 × 0.10

Question 17

All of the following are true of the grace period on credit cards except it

Accepted Answer

A) is usually about 20 days. 
B) applies only to cash advances. 
C) is the time in between the time the statement is "closed" and the time the bill is due. 
D) amounts to free credit time. 
A) is usually about 20 days. 
B) applies only to cash advances. 
C) is the time in between the time the statement is "closed" and the time the bill is due. 
D) amounts to free credit time.

Question 18

Creditors are willing to extend credit when the economy is weak to stimulate purchases.

Accepted Answer

A) True 
 B)False

Question 19

The interest charged on purchases and cash advances on credit cards is computed in the same way.

Accepted Answer

A) True 
 B)False

Question 20

Financial institutions issuing MasterCards and Visas typically earn a high rate of interest on the credit extended.

Accepted Answer

A) True 
 B)False

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

Credit cards with a tiered interest rate charge cardholders who

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

If you have an exceptional credit standing,the company issuing your credit card may upgrade you to what are called ________.

The ________ is usually about 20 days after the credit card statement is closed.

Which credit card requires full payment each month?

The annual percentage rate (APR)is useful because it allows you to easily compare financing costs among various possible creditors.

A disadvantage to credit cards is that there is no way to keep track of individual expenditures.

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.

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

Which of the following is not correct about cash advances?

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

A credit card statement does not contain which of the following?

Which of the following is not true regarding cash advances on credit cards?

Credit cards are generally used for such purchases as

All of the following are true of the grace period on credit cards except it

Creditors are willing to extend credit when the economy is weak to stimulate purchases.

The interest charged on purchases and cash advances on credit cards is computed in the same way.

Financial institutions issuing MasterCards and Visas typically earn a high rate of interest on the credit extended.

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

Exam 8: Managing Your Credit

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

Credit cards with a tiered interest rate charge cardholders who

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

If you have an exceptional credit standing,the company issuing your credit card may upgrade you to what are called ________.

The ________ is usually about 20 days after the credit card statement is closed.

Which credit card requires full payment each month?

The annual percentage rate (APR)is useful because it allows you to easily compare financing costs among various possible creditors.

A disadvantage to credit cards is that there is no way to keep track of individual expenditures.

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.

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

Which of the following is not correct about cash advances?

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

A credit card statement does not contain which of the following?

Which of the following is not true regarding cash advances on credit cards?

Credit cards are generally used for such purchases as

All of the following are true of the grace period on credit cards except it

Creditors are willing to extend credit when the economy is weak to stimulate purchases.

The interest charged on purchases and cash advances on credit cards is computed in the same way.

Financial institutions issuing MasterCards and Visas typically earn a high rate of interest on the credit extended.

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