Credit Terminology Quiz

What is an Annual Fee in the context of credit cards?

• A one-time charge for opening a credit card account

• A monthly charge for using a credit card

• A bank charge for use of a credit card levied each year

• A fee for exceeding the credit limit

What does APR stand for in financial terms?

• Annual Payment Rate

• Annual Percentage Rate

• Annual Premium Rate

• Annual Principal Rate

Who are Authorized Users in the context of a credit card account?

• People who can view the credit card statement

• Any person to whom you give permission to use a credit card account

• The primary cardholder

• Bank employees who manage the account

What is Bankruptcy?

• A high credit score

• A legally inability or impairment of ability of an individual or organization to pay its creditors

• A type of loan

• A method of saving money

What is a Billing Period?

• The time between two credit card statements

• The period that your charges are applied to your credit card

• The time it takes to process a credit card application

• The period during which interest is not charged

What is Collateral?

• A type of credit card

• Property or any tangible assets used as security to get a loan

• A method of calculating interest

• A type of savings account

What is the role of a Cosigner?

• To manage the credit card account

• To sign for a loan and assume equal liability for the debt

• To pay off the loan

• To provide financial advice

What is Credit?

• A method of buying goods and services now and paying for them later

• A type of savings account

• A method of earning interest

• A type of investment

What does a Credit Bureau do?

• Issues credit cards

• Collects and sells information on how people handle credit

• Provides loans to consumers

• Manages bank accounts

What is a Credit Card?

• A card used to buy goods and services from the issuing merchant on credit

• A card used to withdraw cash from ATMs

• A card used to store money

• A card used to transfer funds between accounts