What is a credit limit?

Maximum amount you can charge each billing cycle

Which of the following statements is true comparing debit cards to credit cards?

Debit cards allow you to withdraw from your checking account

Making a credit card minimum payment:

means you are paying a small portion of your total debt

Which of the following is true?

Checks and Debit cards withdraw money directly from account

Which of the following is NOT true of credit cards?

They are the best payment type to use for keeping a budget

What is a credit card balance?

the amount of money you still owe to credit card company

The annual percentage rate on a credit card determines _______

the amount of interest you are charged on purchases

Which is true if paying with both checks and debit cards?

both take money directly out of a bank account

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Everfi Financial Literacy- Module 3 Payment Types

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Payment Types

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Questions 20

Answers

1
Which of the following payment types require you to pay upfront?
Cashier´s check
Money order
All of the above
Pre-paid card
2
Which of the following credit card features should you look for if carrying a large balance?
Low balance transfer fee
Low APR
A large credit limit
Lots of rewards
3
What is the amount of money you still owe to a credit card company called?
Credit Card Interest
Credit Card Fee
Credit Card Balance
Credit Card Limit
4
Which payment type is best if you want to stick to a budget?
Payday loan
Cash advance
Debit card
Credit card
5
Which of the following will happen if you miss a monthly credit card payment?
All of these things listed
You will lose reward points
Your APR will increase next month
You will be charged a late fee
6
What is a credit limit?
Maximum amount you can charge each billing cycle
Required payment to credit card company
How many credit cards you won
Amount of interest you are charged each month
7
Which of the following statements is true comparing debit cards to credit cards?
Debit cards charge higher interest rates on purchases
Debit cards offer greater fraud protection than credit cards
Debit cards never require a signature to finalize a purchase
Debit cards allow you to withdraw from your checking account
8
Making a credit card minimum payment:
is the same thing as making a late payment
will cause your credit card to be cancelled
will have a negative effect on your credit score
means you are paying a small portion of your total debt
9
The amount of money you can charge to a credit card is called:
Annual Percentage Rate
Annual Fee
Credit Limit
Balance Transfer
10
Which of the following can increase your credit card APR?
cashing in on rewards points
missing a payment
paying off full balance
paying the minimum
11
Which is true if you only pay the minimum amount each month toward your Credit Card bill?
2. your APR will increase
3. you may be in debt for a long time
Both 1 & 2
1. you will be charged interest on remaining balance
12
Which of the following is true?
Debit cards offer the highest level of fraud protection
Checks are most widely accepted form of payment
Checks and Debit cards withdraw money directly from account
Debit cards have a higher interest rate than credit cards
13
Which of the following is NOT true of credit cards?
They offer the highest level of fraud protection
You can get charged a fee for late monthly payments
Some offer rewards, like cashback or airline miles
They are the best payment type to use for keeping a budget
14
Which payment method typically charges the highest interest rates?
Payday Loans
Pre-paid cards
Credit Cards
Cashier´s Check
15
Which payment type can help you stick to a budget?
Debit Cards
Credit Cards
Cash Advances
Payday Loans
16
What is a credit card balance?
the required minimum payment to credit card company
a way to track your incoming and outgoing purchases
the amount of money you still owe to credit card company
the amount of interest you must pay credit card company
17
The annual percentage rate on a credit card determines _______
how many credit cards you own
None of the above
the amount your credit limit can go up within a year
the amount of interest you are charged on purchases
18
Which of the following is NOT a common credit card fee?
Late fee
Annual membership fee
Minimum payment fee
Balance transfer fee
19
Which one tells you your credit card interest rate if you pay the minimum balance each month?
Late Fee
Annual Percentage rate
Annual Membership fee
Balance Transfer fee
20
Which is true if paying with both checks and debit cards?
both are accepted by most people and businesses
a personal ID number must be used when paying with both
both work like a loan that you must pay back later
both take money directly out of a bank account

Everfi Financial Literacy- Module 3 Payment Types Flashcards | StudBud