Exam 8: Managing Your Credit

Which of the following personal information would not be asked on a credit card application?

The simple interest rate includes any fees charged by the creditor.

A credit card statement will not show the method of calculating finance charges.

Assuming you were charged simple interest of 5% on a loan of $1,000 that requires you to repay in two payments,one at the end of the first six months and one at the end of the second six months,total payments on the loan would be

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% (1.25% per month),the rate on cash advances is 18% (1.5% per month),and there is a 1% 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.

Use the following two columns of items to answer the matching questions below: -overlimit protection

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

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

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

When you apply for a credit card,the potential creditor will look at which of the following as a source of future debt payments if necessary?

You are considering applying for one of two credit cards.Credit card "A" has an annual fee of $30 and charges interest of 10%.Credit card "B" has no annual fee,but charges an interest rate of 15%.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

Which of the following personal information should not be asked on a credit card application?

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

Advantages of using credit include the ability to make purchases without cash and the convenience of not carrying checks.

Assuming you were charged simple interest on a loan of $4,900 which requires you to repay in one year $5,292,what rate of interest would you be charged? (Round interest rate to the nearest hundredth percent if necessary.)

Which of the following is not a method by which financial institutions calculate finance charges on credit cards?

If you find yourself with an excessive credit card balance,the first thing you should do is

In applying for a credit card,the potential creditor will look at your ________ to determine if you have funds to cover future debt payments if necessary.

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.

Which of the following statements is not true of prepaid cards?