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1.
A credit card issuer is allowed to increase the APR on a new card within the first year _______.
Only in certain circumstances. Certain circumstances, such as if the card agreement discloses up front that it is going to, are allowed.
2.
Why might a merchant offer you a discount if you buy its product with cash instead of credit?
If you pay cash, the merchant wont need to pay a commission on it. But using a credit card results in a commission to the merchant, which is passed on to you through higher prices.
3.
For credit card users who report their card lost or stolen within 30 days of when they discover the loss or theft, what is their liability for any unauthorized charges likely to be?
Not responsible for any charges over $50 after notifying the bank. The key here is notifying the card issuer within a reasonable time of discovering the loss or theft, usually 30 days.
4.
It is possible for a credit card to use several annual percentage rates.
True. A credit card can have a separate rate for purchases and a separate rate for balance transfers, for example.
5.
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 ________.
Double-cycle billing. Double-cycle billing is no longer allowed.
6.
Credit cards may charge fees for which of the following?
All of the above. These are just some of the many fees that credit cards can charge you for various uses.
7.
A credit card that requires you to deposit money as collateral is called _______.
A secured card. The money you deposit acts as its security in the event that you default on it.