Chapter 12: Managing Debt and Credit Quiz

1 point(s)

Which of the following payment methods provides direct access to your bank account funds?

Credit card

Correct Incorrect Correct answer

Debit card

Correct Incorrect Correct answer

Prepaid card

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Layaway

Correct Incorrect Correct answer

1 point(s)

What is a key benefit of using a credit card for purchases?

No risk of fraud

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Immediate transaction

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Building credit history

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Limited to account balance

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1 point(s)

Which of the following best describes a “buy now, pay later” plan?

Immediate payment required

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Payments in installments, often interest-free

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Deferred payments with high upfront costs

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One-time payment

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1 point(s)

Layaway plans enable consumers to take the item home immediately and pay for it later.

True

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False

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1 point(s)

High-interest rates and fees are characteristics of predatory lending practices.

True

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False

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3 point(s)

Definition

Sort elements

Allows users to borrow funds up to a limit to pay for goods and services
Direct access to bank account funds for making purchases
Physical currency used to purchase goods and services directly

Credit Card

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Debit Card

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Cash	Correct Incorrect Correct answer

5 point(s)

Definition

Sort elements

Poor
Fair
Good
Very Good
Excellent

300-579

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580-669

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670-739

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740-799

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800-850

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1 point(s)

Arrange these types of debt from typically highest to lowest interest rates: Credit card debt, Mortgage, Personal loan, Payday loan.

Correct Correct Answer Incorrect

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1 point(s)

Rank these steps from first to last in managing debt effectively: Assess debt situation, Create a budget, Pay off high-interest debt, Seek credit counseling if needed.

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1 point(s)

How can understanding your credit score range benefit your financial decisions?

This response will be reviewed and graded after submission.

Chapter 12: Managing Debt and Credit Quiz