name: Tonnie M date:

lesson eight quiz: credit cards

true-false
1. true A priority credit card is usually accepted by one type of store or company.

2. false The average daily balance method of calculating interest is based on the opening
balance of the account for the previous month.
3. falseThe annual fee for a credit card is set by the government.
4. True APR measures the interest rate charged by a credit card.

5. true If someone uses your lost or stolen credit card and you report it immediately, you
are usually liable for no more than $50.
multiple choice
8. C Comparing the APR among
6. A A credit card issued through a
credit union would be an example several credit cards allows you
of a card. to obtain the:
A. longest grace period.
A. bank
B. lowest annual fee.
B. travel and entertainment
C. lowest interest rate.
C. store
D. priority D. least expensive method of
calculating interest.
7. B The grace period refersto the time:
9. B If a billing error occurs on a
A. taken to process a credit card credit statement, a consumer has
application. days to notify the creditor.
B. for paying an account without A. 30
an interest charge. B. 60
C. allowed to notify a creditor of
C. 90
a billing error.
D. 120
D. used for calculating interest.

case application
Jack uses his credit card for almost all purchases. He charges gas purchases, clothing, food,
and other living expenses. What is your opinion of this money management habit?

Good choice especially if his card gives cash back rewards for gas. Would suggest paying in full when he
can instead of paying minimum monthly payments on expensive purchases.