Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Your credit card company must deliver your bill at least how many days in advance?
Choose wisely. There is only one correct answer.
21. This new threshold allows you a longer grace period.
2.
When a credit card company calculates interest charges on the current balance by factoring in the average daily balance from the previous billing cycle, thats called ________.
Choose wisely. There is only one correct answer.
Double-cycle billing. Double-cycle billing is no longer allowed.
3.
Which type of credit card requires you to pay back your full balance every month?
Choose wisely. There is only one correct answer.
Charge card. The other types of cards noted are not necessarily charge cards.
4.
If you open up a joint credit card account with someone, who is responsible for paying on the balance?
Choose wisely. There is only one correct answer.
Both of you. Per the agreement with the card company, you both are responsible, even if only one of you makes the actual payments.
5.
It is possible for a credit card to use several annual percentage rates.
Choose wisely. There is only one correct answer.
True. A credit card can have a separate rate for purchases and a separate rate for balance transfers, for example.
6.
When considering the potential drawbacks of credit card use, one of the biggest concerns is that you are liable for unlimited amounts of charges incurred when a card is lost or stolen.
Choose wisely. There is only one correct answer.
False. Federal laws and bank policies limit your liability for unauthorized charges, as long as you notify the card issuer in a timely fashion if your card is lost or stolen.
7.
Credit cards may charge fees for which of the following?
Choose wisely. There is only one correct answer.
All of the above. These are just some of the many fees that credit cards can charge you for various uses.