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1.
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.
2.
Credit card companies cannot issue a credit card to anyone under the age of 21 unless the applicant has a co-signer.
True. Applicants under 21 must also provide proof of sufficient income to repay the credit card debt.
3.
If the annual percentage rate on your credit card is 18%, you will pay 18% interest on each months balance.
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%.
4.
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.
5.
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.
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.
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.