Test your knowledge of Budgeting and Debt Management.
Question 1:
Annual Percentage Rate (APR) is the percentage cost (or relative cost) of credit on a yearly basis.
A – Annual Percentage Rate (APR) is the percentage cost (or relative cost) of credit on a yearly basis. – True
B – Annual Percentage Rate (APR) is the percentage cost (or relative cost) of credit on a yearly basis. – False
Question 2:
Compound interest is one of the most expensive ways to borrow and should be avoided at all costs.
A – Compound interest is one of the most expensive ways to borrow and should be avoided at all costs. – True
B – That’s incorrect. Compound interest is one of the most expensive ways to borrow and should be avoided at all costs. – False
Question 3:
Finance charge is the total dollar amount you pay to use credit. It includes interest costs and other costs such as service charges.
A – Finance charge is the total dollar amount you pay to use credit. It includes interest costs and other costs such as service charges. – True
B – That’s incorrect. Finance charge is the total dollar amount you pay to use credit. It includes interest costs and other costs such as service charges. – False
Question 4:
Late fees can be charged if your payment is just one day late and can also lead to an increase in your interest rate.
A – Late fees can be charged if your payment is just one day late and can also lead to an increase in your interest rate. – True
B – Late fees can be charged if your payment is just one day late and can also lead to an increase in your interest rate. – False
Question 5:
As a result of the Truth in Lending Law of 1969, creditors are required to state the cost of borrowing as a dollar amount so that consumers will know exactly what the credit charges are and can compare credit costs and shop for the best rates.
A – As a result of the Truth in Lending Law of 1969, creditors are required to state the cost of borrowing as a dollar amount so that consumers will know exactly what the credit charges are and can compare credit costs and shop for the best rates. – True
B – As a result of the Truth in Lending Law of 1969, creditors are required to state the cost of borrowing as a dollar amount so that consumers will know exactly what the credit charges are and can compare credit costs and shop for the best rates. – False