Personal Financial Literacy Review

How can a cardholder avoid paying interest on a credit card?

• Do not pay anything
• Pay the minimum payment after its due date
• Pay the minimum balance every month
•  Pay the balance in full every month

Tags

CCSS.HSS.MD.B.5

Benefits of credit cards include:

• safe and convenient, bonuses are offered
• allows you to build a positive credit report
• needed for reservations and online shopping
• all of these

What is one advantage of having a credit card?

• It prevents you from spending more than you earn.
• It allows you to make purchases without carrying lots of cash.
• It encourages you to budget your money wisely.
• It helps you pay off debts that you may have.

A debit card is just another name for a credit card.

• True

• False

Debit cardholders are charged interest each time they swipe their cards.

• True

• False

The simple interest formula is I=Prt. The P represents the principal. The principal is ___________________.

• the amount of money borrowed or deposited

• the amount taxed

• the percent interest for this year

• the amount the bank owes you for being a customer at their bank

Tags

CCSS.7.RP.A.3

What is important about how time is calculated in I= Prt ?

• it must be in months
• it must be in years
• it is not calculated

Tags

CCSS.7.RP.A.3

To build a positive credit history, I should pay cash for all purchases.

• True
• False

Tags

CCSS.RL.11-12.6

Routinely paying my bills late could negatively affect my credit history.

• True
• False

Tags

CCSS.RI.6.1

CCSS.RI.6.8

CCSS.RI.7.8

CCSS.RL.6.1

CCSS.RL.7.1

The more credit cards I have, the higher my credit score will be.

• True
• False