Intro to Credit (FL7)

Front

Credit is the most commonly used method of purchase in the United States.

Back

True

Front

Which situation involves the use of credit? Options: borrowing money from a friend, using a credit card, taking out a loan from a bank

Back

All answers are correct

Front

You borrowed $30,000 from the bank to buy a car. When you make your monthly loan payment, you're paying what?

Back

both principal and interest

Front

Which is an advantage of using credit?

Back

Credit can expand your purchasing power

Front

When traveling, which is a safer payment method? Options: cash, credit card

Back

credit card

Front

Which is an example of revolving credit?

Back

credit card

Front

If you pay with a credit card for $200 worth of groceries, you might end up paying more than $200.

Back

True

Front

How do credit card companies make a profit? Options: interest, annual fees, over-the-limit fees, All answers are correct

Back

All answers are correct

Front

Most credit cards allow you to carry a balance from month to month.

Back

True

Front

What does it mean to carry a balance on a credit card?

Back

To pay off only part of the full amount owed that month