PF Review -Q5
Generally speaking, the interest rates on credit cards are lower than any other form of credit. T or F
False
The required monthly payment on an open account will be the smaller of a minimum dollar amount or a specified percentage of the balance. T or F
False
Debit cards look like credit cards, but they work like checks. T or F
True
Revolving credit lines are often accessed by writing checks. T or F
True
Interest rates on ____ are typically lower than on any other form of consumer credit. a. home equity loans b. credit cards c. debit cards d. unsecured personal credit e. travel and entertainment cards
a. home equity loans
All of the following are useful ways to build a strong credit rating except a. Make payments on time. b. Apply for a long-term loan and occasionally be late with a payment. c. Talk with the lender if you foresee difficulty in making a payment. d. Open checking and savings accounts. e. Open and use a charge account.
b. Apply for a long-term loan and occasionally be late with a payment.
Interest will almost always begin to accrue immediately when you use a bank credit card to a. send payments. b. make purchases. c. get cash advances. d. compute finance charges. e. all of these.
c. get cash advances
As a percent of take-home pay, monthly consumer credit payments should not exceed a. 5%. b. 25%. c. 15%. d. 10%. e. 20%.
e. 20%.
William uses his bank credit card frequently; however, he always pays off the total balance on the card each month. What should William look for in a credit card given the way he uses a credit card? a. No annual fee and short grace period b. Low annual fee and short grace period c. High annual fee and low interest rate d. Low annual fee and low interest rate e. No annual fee and long grace period
e. No annual fee and long grace period
Rebate card work best for those who use the rebates and a. charge large amounts on the card. b. pay the total card balance off monthly. c. carry high monthly balances. d. travel internationally. e. a and b.
e. a and b
