Test your knowledge

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

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1.
When shopping for a credit card, you should evaluate several cards because ________.
Choose wisely. There is only one correct answer.
Their interest rates, fees, and other features differ. The knowledgeable credit card user can score great deals this way.
2.
When comparing credit cards, the annual percentage rate (APR) is more important if you don't pay your bill in full each month.
Choose wisely. There is only one correct answer.
True. The APR is the interest rate you will pay on any balance outstanding on your credit card each month. A lower APR can result in substantial savings.
3.
When evaluating a credit card offer, why should you consider how the card's interest rate is calculated?
Choose wisely. There is only one correct answer.
Different methods result in different charges. Based on when you incur charges and when you pay them off, the method used to calculate interest will differ.
4.
If your credit card offers cash-back rewards and you have excellent credit, your credit card might raise your cash-back percentage for you.
Choose wisely. There is only one correct answer.
True. Some cards do this periodically to get you to use them.
5.
Which of the following organizations offer credit cards?
Choose wisely. There is only one correct answer.
All of the above. There are thousands of banks, credit unions, and other organizations that offer credit cards.