Jeopardy – Review

Jeopardy – Review

Column 1 Column 2 Column 3 Column 4 Column 5

$100 $100 $100 $100 $100

$200 $200 $200 $200 $200

$300 $300 $300 $300 $300

$400 $400 $400 $400 $400

$500 $500 $500 $500 $500

ANSWER

This is the % cost of credit on a yearly basis.

This is your key to comparing credit costs.

QUESTION

What is an APR?

$100

ANSWER

A plastic card used to immediately transfer funds for a purchase from a bank account to a seller.

QUESTION

What is a debit card ?

$200

ANSWER

the total dollar amount you pay for using credit.

Includes interest, service charges, and fees.

QUESTION

What is a Finance Charge?

$300

ANSWER

What are four things we should list when writing a check?

QUESTION

What are four things we should list when writing a check?

• Date• Payee• Numerical amount• Written amount• Purpose or account number• Signature

$400

ANSWER

The difference between Credit and Debit cards?

QUESTION

A Debit Card electronically subtracts money instantly from your savings/checking account to pay for a good/service at time of purchase.

A Credit Card extends credit and delays payment?

$500

ANSWER

This is what they call a check with insufficient funds in your bank account to cover the bill payment.

QUESTION

What is a Bounced Check?

$100

ANSWER

Electronic computer terminals which offer automated, computerized banking.

QUESTION

What is an automated teller machine (ATM)?

$200

ANSWER

The receipt of money, goods, or services in exchange for a promise to pay at a later date.

 The most important thing to remember is that

you have to pay it back and at an interest rate finance fee.

QUESTION

What is Credit?

$300

ANSWER

True or False- If you do not pay your credit card bill in full-each month, you will be charged interest on the amount that has not been paid

is a periodic charge in exchange for the use of credit.

QUESTION

What is True?

$400

ANSWER

If you do not pay your credit card bill in full-each month, you will be charged this on the amount that has not been paid.

QUESTION

What is Interest?

$500

ANSWER

The purpose of a Check Register?

QUESTION

• to keep track of deposits• to keep track of check withdrawals  • to maintain the current balance

$100

ANSWER

Three dangers of using credit?

QUESTIONWhat are:• Extremely high interest rates. The worse your credit rating the

higher the interest. (Especially for teenagers) Risk       Easy to spend over your affordable budget. “Ask yourself can I afford this”       Credit companies target less experienced teenage consumers       0% line balance transfers w/ a variable interest rate after the grace period expires       Avoid the Minimum Payment Trap       Don’t let anyone else use your credit card       Don’t keep spending for the free promotional gift

$200

ANSWER

Who tracks your Credit History?

QUESTION

Credit Bureaus- provides information to businesses regarding the credit history of its customers. Maintains records and assigns each person a credit rating.       Be careful a high number of credit inquires can affect your rating.

$300

ANSWER

Three causes of bad credit preventing a bank to loan money to you?

QUESTION

Causes of bad credit preventing a bank to loan money to you:       Overextended in bills       History of not paying bills or late fees       Unemployed       No credit history (too clean of credit)       Bounced Check- write check with insufficient funds in your bank account to cover the bill payment.       Defaulted on loan       Bankruptcy       Error on Credit Report

$400

ANSWER

       Open up a savings or checking account       Apply for 1 credit card, or store card (easier to qualify for)       Always pay promptly (not just the minimum payment)       Understand the credit terms: grace period, interest rate       Be careful not to overuse the card and get yourself into financial trouble       BE PATIENT! IT TAKES TIME TO ESTABLISH GOOD CREDIT.

QUESTION

How do you establish Credit?

$500

ANSWER

the classification a credit agency assigns a person regarding whether or not the person is a good financial risk. 

QUESTION

What is a Credit Rating?

$100

ANSWER

the past performance or record of how individuals or businesses pay their creditors. (Pay on time, & in full)

QUESTION

What is a Credit History?

$200

ANSWER

is the maximum balance that the credit card company will allow you to have on your card.

QUESTION

What is a Credit line?

$300

ANSWER

If you fail to repay a loan

QUESTION

What is Default?

$400

ANSWER

A personal identification number that is required to perform transactions.

QUESTION

What is a PIN number?

$500

ANSWER

Paychecks and benefits checks are directly deposited into a specific depository institution account.

QUESTION

What is a Direct Deposit?

$100

ANSWER

Borrow only what you can repay

Pay Debts Promptly

Report Stolen/lost cards

Read and understand the credit contract

QUESTION

What are your responsibilities as a borrower?

$200

ANSWER

One of the 3C’s that addresses –

What if you don’t repay loan?

QUESTION

What is Capital?

$300

ANSWER

One of the 3C’s that addresses –

Will you repay the debt?

QUESTION

What is Character?

$400

ANSWER

One of the 3C’s that addresses –

What if you don’t repay loan?

QUESTION

What is capital?

$500

FINAL JEOPARDY ANSWER

Name and describe the

3 C’s of credit?

FINAL JEOPARDY QUESTION

What are• Character – will you repay the debt? –

possess the reliability to pay the debt

• Capital – What if you don’t repay the debt? – Do you have valuable assets that could be used to pay the debt if you default – what property do you own?

• Capacity – Can you repay the debt? – Do you work regularly? Provide enough income to support your credit use?