Keep The Currency Statements
1. APR means “a preferred rate” and is the interest rate for consumers with good credit.
2. A revolving line of credit means that a limited number of purchases can be made up to a specific
The interest rate on credit cards is often high because it is an unsecured loan and is quite risky for creditors.
4. A lower interest rate can be obtained for credit cards if a consumer chooses to use collateral to secure the
credit card loan.
5. Recording transactions in a check register should be done at the end of the month when the bank state-
ment is sent.
6. Consumers are likely to buy more cars when the terms of the contract offer lower interest rates.
7. All credit cards are required by law to charge the same interest rate.
8. A debit card is a secured loan with a revolving line of credit.
The Truth in Lending Act of 1969 requires banks to charge a fee for debit card overdrafts.
10. All credit cards offer rewards and cash incentives.
11. The Fair Credit and Charge Card Disclosure Act of 1989 requires all credit card offers to have a 30–day
grace period for making credit card payments.
12. “Caveat emptor” means living within your means.
13. The interest rates on car loans are usually lower than on unsecured loans because there is less risk to
14. The total amount of payments paid on a car loan will be the same as the purchase price of the car.
15. An ATM card is a “pay now” point–of–sale transaction that replaces cash and checks.
16. A rule of thumb is that a vehicle payment should be no more than 20 percent of your take–home pay.
17. It is advantageous to always use cash instead of a credit card for purchases.
18. The most important factor to consider when choosing a credit card is the late payment fee.
19. According to the Truth in Lending Act, car loans must have a lower interest rate than credit cards.
20. Most overdraft charges on bank accounts are because of checks being written when there is not enough
money to cover the checks.