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Question 1

Credit card companies make the most profit from

Answer 1

Charging interest to customers who only pay part of their monthly debt

Question 2

Which is an example of an appreciating asset?

Answer 2

3. A home

Question 3

Once you turn 18, you should regularly check your credit report

Answer 3

For errors or signs of identity fraud

Question 4

Credit cards that offer flashy rewards like airline miles often …

Answer 4

Charge a high annual fee

Question 5

Car lease agreements come with a stipulation that you must pay a penalty if you

Answer 5

Go over the pre-established mileage cap

Question 6

The debt snowball method involves.

Answer 6

Paying off debts from smallest to largest

Question 7

Loans that directly help you advance in life, such as student loans, are acceptable debts.

Answer 7

False

Question 8

Predatory lenders get their negative reputation from . ..

Answer 8

Charging high fees for loans and targeting desperate people

Question 9

A credit score is an indicator of how well someone pays off their debt, not how well they handle money.

Answer 9

true

Question 10

When you buy with credit, you typically spend more than you would with cash or a debit card.

Answer 10

true

Question 11

The smartest way to buy a car is to

Answer 11

Pay for it in cash

Question 12

What is the best way to avoid falling into debt?

Answer 12

Only buy things that you can purchase with cash.

Question 13

Credit isn’t a wealth-building tool, it’s a business that makes money for

Answer 13

Credit card companies, banks, and lenders

Question 14

116.A car is a depreciating asset.

Answer 14

true

Question 15

When looking over your credit report, it’s important to make sure

Answer 15

No lines of credit have been opened under your name without your knowledge

Question 16

Credit card companies charge stores a 2-3% fee for every purchase made with credit cards. This is called a(n)

Answer 16

merchant fee