Credit quiz

What is credit?

• An exchange where you do not have to pay the money back

• An exchange where you pay the money back at a later date

• A type of checking account

• A type of check

If you pay just the minimum payment on your credit card statement....

• You will have to pay interest

• The bank does not make you pay the remaining amount owed back

• You will not get charged interest

• You will have to pay a tax

This is the yearly interest rate charged...

• Due date

• Cash advance

• APR

• Transactions

One similarity between a debit card and credit card is that

• They both earn you interest

• They both are your own money

• They both involve borrowing money

• They both can be used to make purchases online

This is the period of time before the due date where you can make your payment in full without getting charged interest

• Grace period

• Posting date

• Debit

• Transaction date

Which of the following pieces of information can you find on a credit card statement?

• Your job title

• The due date

• Your paycheck deductions

• Your debit card

True or false: If you only make the minimum payment on your credit card bill, it will take longer to pay off the full balance.

• True

• False

True or false: With a credit card you are using the bank's money, not your own.

• True

• False

This is the smallest amount of your credit card bill you must pay in order to remain in good standing with the lender

• APR

• Maximum payment

• Minimum payment

• Grace period

In order to avoid paying any interest on your credit card bill you must...

• Pay your balance owed in full

• Pay half your balance owed

• Pay the minimum payment

• Open up multiple credit cards