The Cost of Credit Quiz

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The Cost of Credit Quiz
You'll need to correctly answer at least 9 of the 18 questions below (at least 50%) to progress to the next unit.
Question #1: All credit options are bad.
Question #2: Generally if you pay off the entire outstanding balance of your credit card bill before the due date, you will not be charged interest.
Question #3: In the bill that credit card companies give you, what does "minimum payment" mean?
Question #4: Assume you have a balance on your credit card of $500. The minimum payment is 2%, or $10. The interest is 15% annually, so interest for that month would be $500 x 15% divided by 12 months = $6.25. What would be the new amount owing after you made the minimum payment that month?
Question #5: Generally, you should always pay your credit card bill in full every month.
Question #6: With term loans, you only have to pay a minimum payment each month, and that amount can vary month-to-month.
Question #7: With term loans, as the balance decreases, the percentage of your payment that goes to pay interest increases.
Question #8: If a term loan is for $500, and the interest on that loan is 10% annually, how much interest will be charged on the first month?
Question #9: Generally with "Buy Now, Pay Later" programs, you can leave the store with the purchase without paying any money.
Question #10: For "Buy Now, Pay Later" programs, the CRA is owed taxes on the purchase item only when you actually start to pay for the item.
Question #11: Interest rates for "Buy Now, Pay Later" programs are generally higher than rates for bank/credit union term loans.
Question #12: Generally with "Buy Now, Pay Later" programs, interest starts to accumulate only after the "later" period is over.
Question #13: Generally, there are no taxes on "Buy Now, Pay Later" setup fees.
Question #14: Generally with "Buy Now, Pay Later" programs, even if your first payment is a day late you will be charged interest.
Question #15: The interest charged on "Buy Now, Pay Later" programs will never include interest charged on the purchase item's taxes.
Question #16: You should use EXTREME CAUTION when considering and using which of the following services?
Question #17: A "Rapid-Refund" Tax Service can provide you with an instant refund by getting the CRA to give you your tax refund back quicker.
Question #18: Generally when you give a Pawn Shop your possessions as collateral so that they can give you a loan, the loan is a fraction of the true value of the collateral.
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