Test Review: Unit 6 (Part B)

Front

What is the Minimum Payment for a credit card statement?

Back

The Minimum Payment is the smallest amount you can pay on your credit card bill to keep your account in good standing. For example, it could be $20.00.

Front

True or False: Interest can be the money paid by a bank to a consumer for keeping money in that bank.

Back

True. Interest can be earned by consumers for keeping their money in a bank.

Front

If a criminal charges $10,000 on a stolen credit card, how much will the cardholder have to pay if they have a liability limit of $150?

Back

The cardholder will have to pay $150.

Tags

CCSS.6.RP.A.3B

Front

What is the purpose of a credit report?

Back

The purpose of a credit report is to help lenders determine if you are a qualified candidate for credit.

Front

If Jim wants to buy a computer costing $1,180 and saves $60 a month, how long will it take him to save for it?

Back

It will take Jim approximately 20 months to save for the computer.

Tags

CCSS.6.EE.B.7

Front

Define 'Credit Card'.

Back

A credit card is a plastic card issued by a bank or financial services company that allows the cardholder to borrow funds to pay for goods and services.

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.5

CCSS.RI.9-10.3

CCSS.RI.9-10.5

Front

What is 'Interest Rate'?

Back

The interest rate is the percentage of a loan charged as interest to the borrower, typically expressed as an annual percentage.

Tags

CCSS.7.RP.A.3

Front

What does 'Credit Limit' mean?

Back

Credit limit is the maximum amount of credit that a financial institution extends to a client on a credit card.

Front

Explain 'Annual Percentage Rate (APR)'.

Back

APR is the annual rate charged for borrowing or earned through an investment, expressed as a percentage.

Tags

CCSS.7.RP.A.3

Front

What is 'Debt'?

Back

Debt is an amount of money borrowed by one party from another, which is expected to be paid back with interest.