Question 1

If your credit card company decides to increase your interest rate,it must notify you 30 days in advance.

Accepted Answer

A) True 
 B)False

Question 2

Credit card companies offer many incentives,such as airline miles and bonuses to get you to use their cards.

Accepted Answer

A) True 
 B)False

Question 3

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 4

The easiest way to establish credit is to

Accepted Answer

A)  purchase a new car with a car loan. 
B)  purchase a house with a mortgage. 
C)  obtain a credit card. 
D)  pay cash for all your purchases. 
A)  purchase a new car with a car loan. 
B)  purchase a house with a mortgage. 
C)  obtain a credit card. 
D)  pay cash for all your purchases.

Question 5

Why is it important to carefully consider your credit cards when developing a budget,financial plan and personal financial objectives?

Accepted Answer

A)  You should include more than the minimum payments in the budget to pay off the balances as soon as possible and minimize interest expense. 
B)  Evaluate relative interest rates of all cards and other loans, and investments to understand how best to prioritize payments and decide on best use of excess cash flow. 
C)  Financial plan should really focus on investing excess cash flow for retirement. 
D)  Both A and B are correct 
A)  You should include more than the minimum payments in the budget to pay off the balances as soon as possible and minimize interest expense. 
B)  Evaluate relative interest rates of all cards and other loans, and investments to understand how best to prioritize payments and decide on best use of excess cash flow. 
C)  Financial plan should really focus on investing excess cash flow for retirement. 
D)  Both A and B are correct

Question 6

Use the following two columns of items to answer the matching questions below:
-simple interest

Accepted Answer

A) statement that lists beginning balance, purchases and payments, and an ending balance 
B) the simple interest rate after including any fees imposed by the creditor 
C) the percentage of credit that must be paid as interest on an annual basis 
A) statement that lists beginning balance, purchases and payments, and an ending balance 
B) the simple interest rate after including any fees imposed by the creditor 
C) the percentage of credit that must be paid as interest on an annual basis

Question 7

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

Accepted Answer

A)  Treat it as a means of convenience 
B)  Use it as a source of funds 
C)  Make the minimum required monthly payment 
D)  All of the above 
A)  Treat it as a means of convenience 
B)  Use it as a source of funds 
C)  Make the minimum required monthly payment 
D)  All of the above

Question 8

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 9

Prestige cards always charge higher interest rates,but offer extra benefits such as access to private jet programs and concierge service at hotels.

Accepted Answer

A) True 
 B)False

Question 10

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 11

Credit cards with tiered interest rates 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)  carry large balances 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)  carry large balances a higher rate.

Question 12

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

Accepted Answer

A)  Credit cards are generally the most expensive form of credit. 
B)  You should invest funds before paying off your credit cards. 
C)  It is prudent to borrow from some cards to pay off other credit cards. 
D)  All of the above. 
A)  Credit cards are generally the most expensive form of credit. 
B)  You should invest funds before paying off your credit cards. 
C)  It is prudent to borrow from some cards to pay off other credit cards. 
D)  All of the above.

Question 13

When making payments on a credit card,the amount paid is first applied to ________ and the remainder is applied to ________.

Accepted Answer

A)  late fees; interest 
B)  balance due; late fees 
C)  interest for the month; balance due 
D)  The entire payment is applied to the balance due. 
A)  late fees; interest 
B)  balance due; late fees 
C)  interest for the month; balance due 
D)  The entire payment is applied to the balance due.

If your credit card company decides to increase your interest rate,it must notify you 30 days in advance.

Credit card companies offer many incentives,such as airline miles and bonuses to get you to use their cards.

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

The easiest way to establish credit is to

Why is it important to carefully consider your credit cards when developing a budget,financial plan and personal financial objectives?

Use the following two columns of items to answer the matching questions below: -simple interest

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

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

Prestige cards always charge higher interest rates,but offer extra benefits such as access to private jet programs and concierge service at hotels.

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

Credit cards with tiered interest rates charge cardholders who

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

When making payments on a credit card,the amount paid is first applied to and the remainder is applied to .

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

If your credit card company decides to increase your interest rate,it must notify you 30 days in advance.

Credit card companies offer many incentives,such as airline miles and bonuses to get you to use their cards.

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

The easiest way to establish credit is to

Why is it important to carefully consider your credit cards when developing a budget,financial plan and personal financial objectives?

Use the following two columns of items to answer the matching questions below: -simple interest

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

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

Prestige cards always charge higher interest rates,but offer extra benefits such as access to private jet programs and concierge service at hotels.

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

Credit cards with tiered interest rates charge cardholders who

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

When making payments on a credit card,the amount paid is first applied to ________ and the remainder is applied to ________.

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

When making payments on a credit card,the amount paid is first applied to and the remainder is applied to .