Credit Basics

The two most commonly used types of credit are which of the following?

• Installment loans and Credit cards
• Credit and ATM cards
• Debit and ATM cards
• Installment loans and debit cards

Whether you are dealing with a loan or a credit card,the actual amount borrowed is known as what?

• Annual percentage rate(APR)
• Minimum payment
• Principal
• Finance charge

Whether you are dealing with a loan or a credit card,the amount of interest your payment includes each month is known as what?

• Principal
• Finance charge
• Minimum payment 
• Annual percentage rate (APR)

Whether you are dealing with a loan or a credit card,the percentage used to calculate the amount of interest you owe is known as what?

• Annual percentage rate(APR)
• Finance charge
• Principal
• Minimum payment

When dealing with a credit card,the amount of money you must pay each month is known as what?

• Finance charge
• Annual percentage rate(APR)
• Principal
• Minimum payment

Which of the following means to default on a loan or credit card?

• Make only the minimum payment each month
• Stop making payments with no ability to ever make payments
• Pay on the balance every month
• To pay off your balance in full

The flexibility of buying on credit is consider which of the following?

• An advantage
• A pitfall
• A disadvantage
• A Danger

The convenience of buying on credit is considered which of the following?

• An advantage
• A disadvantage
• A pitfall
• A danger

Easy access when buying on credit is considered which of the following?

• A luxury
• A disadvantage
• An advantage
• Convenience

Paying interest on small purchases when buying on credit is considered which of the following?

• A luxury
• A disadvantage
• An advantage
• Convenience