#1
Which of the following is NOT a common credit card finance charge?
Interest
Annual fee
Late payment fee
Transaction fee
#2
What is the purpose of the minimum payment on a credit card?
To reduce the outstanding balance to zero
To avoid accumulating interest charges
To meet the requirement to keep the account open
To fulfill the legal obligations of the card issuer
#3
What is the grace period on a credit card?
The time allowed to dispute charges
The period during which no interest is charged on new purchases
The period after the due date before late fees are applied
The period during which the cardholder can cancel the card
#4
Which of the following is a factor used in the calculation of credit card interest?
The cardholder's age
The card's color
The cardholder's income
The card's annual fee
#5
What does the term 'balance transfer' refer to in credit card finance?
Transferring funds from a checking account to pay off credit card debt
Transferring a balance from one credit card to another with lower interest rates
Transferring rewards points to redeem for statement credits
Transferring a credit card balance to a savings account for better interest rates
#6
Which of the following is NOT a potential consequence of failing to pay the minimum amount due on a credit card?
Accumulation of interest charges
Negative impact on credit score
Automatic account closure
Imposition of late payment fees
#7
What is the main purpose of a credit card's billing cycle?
To determine the cardholder's credit limit
To calculate the cardholder's annual fee
To track the cardholder's spending activity
To establish the cardholder's credit score
#8
Which method calculates credit card interest based on the average daily balance of the billing cycle?
Adjusted balance method
Previous balance method
Daily balance method
Average daily balance method
#9
What does APR stand for in the context of credit cards?
Average Payment Rate
Annual Percentage Rate
Account Payment Ratio
Active Payment Ratio
#10
What is the main purpose of the CARD Act?
To regulate debit card transactions
To regulate credit card transactions and protect consumers
To encourage cash transactions over card transactions
To reduce the use of credit cards
#11
Which type of credit card typically offers rewards or cashback on purchases?
Student credit card
Secured credit card
Business credit card
Rewards credit card
#12
What is the main purpose of the Credit CARD Act of 2009?
To promote the use of credit cards
To regulate credit card fees and disclosures
To eliminate credit card rewards programs
To increase credit card interest rates
#13
Which of the following is NOT a method commonly used to calculate credit card interest?
Average daily balance method
Previous balance method
Fixed rate method
Adjusted balance method
#14
Which law requires credit card issuers to disclose terms and fees clearly and conspicuously in credit card offers?
Truth in Lending Act (TILA)
Fair Credit Reporting Act (FCRA)
Equal Credit Opportunity Act (ECOA)
Fair Credit Billing Act (FCBA)
#15
Which factor affects the finance charges on a credit card the most?
The card's brand
The cardholder's credit limit
The cardholder's payment history
The card's expiry date
#16
What is the purpose of the Schumer Box?
To display the terms and conditions of a credit card in a standardized format
To provide customer support for credit cardholders
To process credit card payments
To regulate credit card interest rates
#17
What is the purpose of the Schumer Box in credit card disclosures?
To provide information on the card's annual fee
To summarize key terms and fees associated with the card
To display the cardholder's current balance
To disclose the card's interest rate only
#18
What does the term 'grace period' mean in the context of credit cards?
The period during which cardholders can make purchases without interest charges
The period during which cardholders can dispute charges on their credit card statement
The period during which cardholders can pay their credit card bill without incurring late fees
The period during which cardholders can cancel their credit card without penalty
#19
Which method calculates credit card interest based on the balance at the end of the previous billing cycle?
Daily balance method
Adjusted balance method
Average daily balance method
Previous balance method