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1.
Co-branded credit cards may be used at locations other than the ones that co-brand them.
Choose wisely. There is only one correct answer.
True. But if you use them with the businesses they are named with, you can get extra rewards.
2.
A credit card issuer is allowed to increase the APR on a new card within the first year _______.
Choose wisely. There is only one correct answer.
Only in certain circumstances. Certain circumstances, such as if the card agreement discloses up front that it is going to, are allowed.
3.
Why might a merchant offer you a discount if you buy its product with cash instead of credit?
Choose wisely. There is only one correct answer.
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.
4.
After the promotional APR on a credit card ends, the interest rate switches to the _______ APR.
Choose wisely. There is only one correct answer.
Regular. The regular APR is for regular use.
5.
What is the name for the credit card fee that is charged to you when you take money out of your card?
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Cash advance fee. This fee is charged for cash advances made on your card.
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.
If the annual percentage rate on your credit card is 18%, you will pay 18% interest on each months balance.
Choose wisely. There is only one correct answer.
False. The APR refers to the interest rate for the whole year. For this month, it would be only 1/12 of that, which would be 1.5%.