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The following are the
correct answers for the previous worksheet. They are
presented here for your information only. Once completed
reviewing them continue to the next unit by clicking next
or continue at the
bottom of the page.
1. For which of the following
purchases would it be appropriate to use credit
(repayment over time)?
a.
Buying a
packet of cigarettes
b.
Paying for
a meal out with friends
c.
Buying
holiday gifts
Correct - d.
Paying for
a car repair
2. Credit cards should not be
considered:
Correct - a.
an
additional income source.
b.
a more
convenient method of payment than cash.
c.
a useful
tool for dealing with financial emergencies.
d.
a
commitment of future financial resources.
3. A finance charge is:
Correct - a.
Expressed in dollars and cents
b.
The annual
fee charged for having a credit card
c.
Expressed
as a percentage
d.
The fee
that is charged for obtaining a credit report
4. A debit card:
a.
is
another name for a credit card.
b.
can only
be used for withdrawing cash from ATMs.
Correct - c.
can be used anywhere a credit card can be used.
d.
provides
you with five days of credit.
5. If you make the minimum
payment each month:
a.
you
will always be able to pay off the balance within twelve
months.
b.
you will
increase the balance owed because the finance charges
are always adding to it.
Correct - c.
it may take a substantial period of time to pay
off the balance if the finance charges are almost equal
to the payment.
d.
you will
quickly pay off the amount owed as the minimum payment
is usually 20-30% of the balance due.
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