Everfi Module 3 Payment Types HOUND

Making a credit card minimum payment:

Means you are paying a small portion of your total credit card debt

Which of the following tells you how much credit card interest will be if you only pay the minimum balance each month?
A: Annual Membership Fee
B: Annual Percentage Rate
C: Late Fee
D: Balance Transfer Fee

B

Which payment type can help you stick to a budget?

Debit Cards

The amount of money you can charge to a credit card is called:

Credit Limit

Which of the following is true?
A: Checks are the most widely accepted form of payment
B: Debit Cards often have higher interest rate than Credit Cards
C: Checks and Debit Cards both withdraw money directly from a bank account
D: Debit cards offer the highest level of fraud protection

C

Which of the following statements comparing debit cards to credit cards is TRUE?
A: Debit cards allow you to draaw funds direct;y from your checking account
B: Debit cards typically offer greater fraud protection than credit cards
C: Debit cards never require a signature to finalize a purchase like credit cards
D: Debit cards charge higher interest rates on purchases than credit cards

A

What is a credit card balance?

The amount of money you still owe to the credit card company

The annual percentage rate on a credit card determines _________.

the amount of interest you are charged on a credit card purchase

What is a credit limit?

The maximum amount you can charge each billing cycle