Understanding Credit Cards and Financial Responsibility Quiz
Test your knowledge on credit card management with questions on APR, billing cycles, credit limits, and more. Understand financial responsibility!
#1
What is the minimum payment on a credit card?
The full outstanding balance
A fixed percentage of the outstanding balance
A fixed fee unrelated to the outstanding balance
There is no minimum payment
#2
What is the APR on a credit card?
Annual Payment Rate
Average Purchase Rate
Annual Percentage Rate
Average Payment Requirement
#3
What is the difference between a credit card and a debit card?
Credit cards have higher interest rates
Debit cards require a credit check
Credit cards use borrowed money, while debit cards use your own funds
Debit cards have a higher credit limit
#4
How does the credit card utilization ratio impact your credit score?
Higher ratio improves the credit score
It has no impact on the credit score
Lower ratio is better for the credit score
It only affects the credit limit
#5
What is the concept of minimum finance charge on a credit card?
The minimum amount you must charge to your card each month
A fee charged for not using the card frequently
The minimum interest charged on small balances
A fee charged for not paying the full balance
#6
How does a credit card billing cycle work?
It is the time between two consecutive card purchases
It is the time between receiving the bill and making the payment
It is the time between two consecutive billings
It is the time between applying for a card and receiving it
#7
What is a grace period on a credit card?
The time between the purchase and when interest starts accruing
A period during which no payments are required
The time between receiving the bill and making the payment
A period during which the card is inactive
#8
What is an annual fee on a credit card?
A fee charged monthly
A fee charged for each transaction
A one-time fee charged yearly for card membership
A fee waived for the first year
#9
How does a cash advance on a credit card work?
It is a cash reward for good credit behavior
It is a loan from the credit card company with high fees and interest
It is a discount on future purchases
It is a bonus for using the card frequently
#10
What is a balance transfer on a credit card?
Transferring money from a bank account to the card
Transferring an outstanding balance from one card to another
Transferring rewards points to another card
A type of cash advance
#11
What is a credit limit on a credit card?
The maximum amount you can borrow
The minimum amount you must spend
The maximum number of transactions allowed
The minimum balance required in the account
#12
What is a penalty APR on a credit card?
A lower interest rate as a reward
An additional fee for exceeding the credit limit
A temporary increase in interest rate for late payments
A discount on the annual fee
#13
What is the purpose of a credit limit increase request?
To decrease the available credit
To increase the interest rate
To request a lower credit limit
To request a higher maximum spending limit
#14
What is the impact of closing a credit card account on your credit score?
No impact on the credit score
It improves the credit score
It may negatively impact the credit score
It only affects the available credit
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