Exam 8: Managing Your Credit

One disadvantage of a proprietary credit card is that it limits your purchases to a single merchant.

Which of the following are good tips on the use of a credit card?

Some credit cards offer card users cash rewards if they exceed a certain spending level each month.

Which of the following may not be a feature of some credit cards?

There is no cost to the merchant when you use a MasterCard or Visa.

You have a credit card on which your beginning balance for the month was $400.On the 10th of the month you took out a cash advance of $500.During the month you made purchases of $250.Assuming that the interest rate on purchases is 15 percent (1.25 percent per month),cash advances is 18 percent (1.5 percent per month),and there is a 1 percent fee on all cash advances,what would you have to pay to pay off your account if your due date is the 30th of the month. (a)$1,165 (b)$1,222.50 (c)$1,305 (d)$1,342.50

If a credit card has a provision allowing you to make purchases beyond the stated credit limit,it is referred to as

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

There are many incentives,such as discounts and bonuses,offered by credit card companies to get you to use their cards.

Describe the advantages and disadvantages of credit cards.

To properly manage your money you should use a credit card only if you will have the cash to cover the payment when you receive your credit card statement.

All of the following are true of prestige credit cards except they

Jill just borrowed $6,000 and will be charged a simple interest rate of 12 percent.Jill will pay ________ interest for borrowing the money on September 1 and repaying the money on December 31.

Credit limits may be as high as $10,000 for those credit card holders who have an exceptional credit history.

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

The annual percentage rate (APR)is all of the following except

The annual percentage rate (APR)on credit is the simple interest rate after including any fees (such as an application processing fee)imposed by the creditor.

Some credit card companies will waive the annual fee on a credit card if

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

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.