Quiz 3.5 - 3.7

Question 1

Credit Card

Answer 1

Plastic Card that allows you to make purchases that you can pay for later

Question 2

Impulse Buying

Answer 2

When a consumer purchases something that they were suddenly attracted to and initially had no intention of buying

Question 3

Revolving Charge Account

Answer 3

Most commonly used credit card account that does not require you to pay your debt in full each month. There is a minimum monthly charge and interest will acrue monthly beginning the month after when initial payment was due

Question 4

Charge Card

Answer 4

Monthly charges on the bill must be paid in full and there is no interest

Question 5

Truth in Lending Act

Answer 5

Protects you if your card is lost or stolen. If you notify your creditor before any purchases are made, you will not be held accountable for those purchases. If a payment on the card is made before you notify the creditor, you may have to pay up to $50 in liability charges

Question 6

Schumer Box

Answer 6

formatted information about credit card fees printed so consumers can verify creditors informations

Question 7

Fair Credit Billing Act

Answer 7

protects you if there are any errors in your monthly statement. Will not have to pay the disputed amount until situation is cleared up

Question 8

Fair Debt Collection Practices Act

Answer 8

prohibits creditor for harassing you or charging unnecessary items if you find that you can not pay your credit card balance

Question 9

Debit Card

Answer 9

Charges money directly to your account

Question 10

Electronic Funds Transfer Act

Answer 10

protects debit card users against unauthorized use of their cards

Question 11

Billing Cycle

Answer 11

Time period where you can make purchases. At the end the billing cycle you’ll receive a summary of your purchases and the amount of money that you owe

Question 12

Credit Card Statement

Answer 12

Information about your credit account released each month

Question 13

Account Number

Answer 13

Unique number affiliated with each credit account

Question 14

Credit Line

Answer 14

Maximum amount of money you can owe at any given time

Question 15

Available Credit

Answer 15

Difference between the amount you owe and the credit line

Question 16

Billing Date

Answer 16

The date the statement was writtten

Question 17

Debits/Credits

Answer 17

Debit = the amount charged to your account
Credit = payment made to reduce your debts

Question 18

Credit Calendar

Answer 18

visual accounting of purchases and payments that can help you calculate the average daily balance