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Introducing the Credit Card: Answer Guide

Quick Reference Answer Guide

Exercise 1: What is a credit card?

  1. D: Both A and B
  2. B: 4670 1016 4923 7710
  3. E: A credit card number can be 16 to 19 digits long.
  4. D: Both A and B
  5. E: 3 or 4

Exercise 2: How do credit cards work?

  1. B: False
  2. C: The merchant, the acquirer, and the issuer
  3. D: Authorization, batching, clearing, and funding
  4. D: All of these will work as credit card payment options
  5. B: $20

Exercise 3: Do credit cards have fees?

  1. B: Annual percentage rate
  2. D: Continue to the next section for the Quick Reference Answer Guide.
  3. D: When you withdraw money from an ATM
  4. C: $96
  5. D: $50

Exercise 4: How can I apply for a credit card?

  1. B: 18
  2. C: It depends on the credit card.
  3. Check over the students’ applications.

Exercise 5: How can I avoid credit card debt?

  1. B: False
  2. D: Both A and B

Exercise 6: How do rewards programs work?

  1. C: $201.38
  2. E: All of the above
  3. A: It would go up because the total spent would go up.

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