True/False
Indicate whether the sentence or statement is true or
false.
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1
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(5 points) All credit cards have an annual
fee.
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2
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(5 points) Capital refers to the value of the
borrower’s assets.
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3
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(5 points) If you lose your bank credit card and you
report it immediately to the credit card company, you are only liable for $500 of what someone might
charge on it.
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4
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(5 points) If you don’t have the money to make
a large purchase and won’t have it for many months, a credit card is your best way to use
credit as it is convenient and generally the credit card company charges a low interest rate.
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Multiple Choice
Identify the letter of the choice that best
completes the statement or answers the question.
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5
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(5 points) Which of the following is NOT a benefit
of credit for the consumer?
a | you don’t have to carry lots of cash on your person | b | allows you to have
immediate possession of the item you want | c | tend to purchase more on credit than if you had
to write a check or pay in cash | d | allows you to buy an item when it goes on sale
for potential savings |
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6
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(5 points) Which of the following is NOT a problem
of credit for the consumer?
a | credit use hurts your credit record so you shouldn’t use it any more than you
have to. | b | overuse of credit can result in too much being owed | c | careless buying may
result if you become lazy in your shopping | d | higher prices may be paid because some
businesses will charge more if a purchase is made on credit |
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7
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(5 points) The additional amount you must pay for
using credit is....
a | PIN | c | application fee | b | finance charge | d | usage fee |
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8
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(5 points) Credit cards that can only be used at
certain stores and are company specific are called....
a | bank charge cards | c | retail store cards | b | travel & entertainment
cards | d | VISA &
Mastercard |
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9
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(5 points) American Express credit cards are
classified as a....
a | bank charge card | c | oil company credit card | b | travel &
entertainment | d | retail store
credit card |
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Completion
Complete each sentence or statement.
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10
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(5 points) When a consumer charges a purchase at the
time they buy the good or service, it is known as ____________ credit. (spell your one-word
answer correctly and do not capitalize)
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