The Econ4U Credit Cards Quiz

Prudent use of a credit card involves which of the following?

Spending to your limit and making minimum payments regularly and on time.
Spending below the credit limit and making minimum payments regularly and on time.
Spending above the credit limit and making minimum payments regularly and on time.
Paying off the full balance on time each month.
Please select an answer.

If the Annual Percentage Rate (APR) increases on your card, it should encourage you to:

Buy more items with your credit card.
Sign up for a new credit card.
Continue making minimum payments on your existing balance.
Buy fewer items, and instead pay off credit card debt.
Please select an answer.

When can credit card companies raise interest rates on pre-existing credit card balances?

When cardholders are notified within 30 days of the increase.
When a payment is over 60 days late.
When cardholders have more than one card.
At any time and without notice.
Please select an answer.

The annual percentage rate--APR--is the interest rate you will pay if you:

Carry over an existing balance to the following month.
Take out a cash advance.
Transfer a balance from another credit card.
All of the above
Please select an answer.

An introductory Annual Percentage Rate (or APR is the rate of interest credit card companies charge for:

Cash advances and balance transfers.
An initial period of time.
Low levels of the outstanding balance.
Making late payments.
Please select an answer.

If your credit card is lost or stolen, and then used by someone to make purchases without your permission:

You do not have to pay more than $50 of those charges.
You pay only 50 percent of the amount charged.
You pay only 50 percent of the amount charged and are subject to credit fines.
You must pay the full amount owed.
Please select an answer.

What are your options if you use a credit card to purchase an item that you find is damaged upon receipt?

You have to cover the charge and independently file a suit against the business that sold the item.
You can withhold payment from the merchant without explanation or action.
You can withhold payment from the credit card company while working to solve the problem with the merchant.
You can file a complaint with the federal Fair Credit Billing agency and reimbursement is sent on favorable settlement.
Please select an answer.

What type of credit card requires a deposit before use?

Standard
Premium
Depository
Secured
Please select an answer.

If faced with an unexpected cash need, which of these options will typically cost the most?

Bounce a check
Get a payday loan
Initiate a wire transfer
Pay a credit card late fee
Please select an answer.

True or False: The Annual Percentage Rage (or APR) is only applied annually to your outstanding credit card balance.

True
False
Please select an answer.