Payment Types – Everfi terms and answers to learn
Which of the following payment types require you to pay upfront?Money order
Cashier’s check
Pre-paid card
All of the above
Cashier’s check
Pre-paid card
All of the above
All of the above
Which of the following are true if you pay only the minimum amount each month towards your credit card bill?A. You will be charged interest on your remaining balance
B. Your Annual Percentage Rate will increase
C. You may be in debt for a long time
B. Your Annual Percentage Rate will increase
C. You may be in debt for a long time
A & C
What is the amount of money you still owe to their credit card company called?
Credit card balance
If you are planning to carry a large balance on your credit card, which of the following credit card features should you look for?Low APR
Low balance transfer fee
Lots of credit card rewards
A large credit limit
Low balance transfer fee
Lots of credit card rewards
A large credit limit
Low APR
Which payment type can help you stick to a budget?
Debit cards
Which of the following is NOT true of credit cards?Some offer rewards
You can be charged a fee if you’re late making a monthly payment
Offer highest level of fraud protection
Best payment type to use when sticking to a budget
You can be charged a fee if you’re late making a monthly payment
Offer highest level of fraud protection
Best payment type to use when sticking to a budget
Best payment type to use when sticking to a budget
Which of the following is NOT a common credit card fee?Late fee
Annual membership fee
Balance transfer fee
Minimum payment fee
Annual membership fee
Balance transfer fee
Minimum payment fee
Minimum payment fee
The amount of money you can charge to a credit card is called:
Credit limit
Which of the following tells you how much your credit card interest will be if you only pay the minimum balance each month?Late fee
Annual membership fee
Balance transfer fee
Annual Percentage Rate
Annual membership fee
Balance transfer fee
Annual Percentage Rate
Annual Percentage Rate
Which of the following is true of both paying with a check and paying with a debit card?Both are accepted by most people and businesses
When used, both take money directly from your account
A personal identification number must be anytime checks or debit cards are used
Both work like a loan from your bank that you can pay back later
When used, both take money directly from your account
A personal identification number must be anytime checks or debit cards are used
Both work like a loan from your bank that you can pay back later
When used, both take money directly from your account
Which of the following is true?Checks and Debit Cards both withdraw money directly from a bank account.
Checks are the most widely accepted form of payment
Debit Cards often have a higher interest rate than Credit Cards.
Debit cards offer the highest level of fraud protection.
Checks are the most widely accepted form of payment
Debit Cards often have a higher interest rate than Credit Cards.
Debit cards offer the highest level of fraud protection.
Checks and Debit Cards both withdraw money directly from a bank account.
Which of the following statements comparing debit cards to credit cards is TRUE?Debit cards allow you to draw funds directly from your checking account.
Debit cards typically offer greater fraud protection than credit cards.
Debit cards never require a signature to finalize a purchase like credit cards.
Debit cards charge higher interest rates on purchases than credit cards.
Debit cards typically offer greater fraud protection than credit cards.
Debit cards never require a signature to finalize a purchase like credit cards.
Debit cards charge higher interest rates on purchases than credit cards.
Debit cards allow you to draw funds directly from your checking account.
Which payment method typically charges the highest interest rates?Credit cards
Cashier’s checks
Pre-paid cards
Payday loans
Cashier’s checks
Pre-paid cards
Payday loans
Payday loans
Which of the follow will happen if you miss a monthly credit card payment?You will be charged a late fee
You lose reward points
Your APR will increase the next month
Both A and B
You lose reward points
Your APR will increase the next month
Both A and B
You will be charged a late fee
What is a credit limit?
The maximum amount you can charge each billing cycle.
The annual percentage rate on a credit card determines _______.
the amount of interest you are charged on credit card purchases
Making the minimum credit card payment:
Means you are paying a small portion of your total credit card debt
Which of the following can increase your credit card’s APR?Paying the minimum
Missing a credit card payment
Paying off the full balance
Cashing in on rewards points
Missing a credit card payment
Paying off the full balance
Cashing in on rewards points
Missing a credit card payment
What is a credit card balance?
The amount of money you still owe to the credit card company
Payment Types Everfi Reflection
The whole point of this class is to help you out in your life. Therefore, you are going to respond in a blog following the basic guidelines to apply the information to your life.
Before: What did I know about types of payment before this module?
During: What specifically did I learn about while studying this module?
At least answer these guiding questions.
- What are all the benefits of using cash?
- What are all the disadvantages?
- Where can you not use it?
- How does a debit card work?
- Why would you use it instead of cash?
- How does a credit card work?
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