True/False
Indicate whether the sentence or statement is true or
false.
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| 1. | All credit cards have an annual
fee.
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| 2. | Capital refers to the value of
the borrower’s assets.
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| 3. | 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. | 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. | 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. | 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. | The additional amount you must
pay for using credit is.... a. | interest | b. | finance
charge | c. | application fee | d. | usage fee | | | | | | | | |
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| 8. | 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. | 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. | 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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