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6. What fun! You’re on holiday in Rome. After a busy day of sightseeing, you stop at a little cafe for delizioso spaghetti alle vongole (spaghetti with clams). You pay 15 euro for the meal, which is equivalent to about $18 USD. How much is the foreign transaction fee? _ ______________________________________________________________________________ 7. While on vacation, you get swept up in the beauty of the Italian countryside and completely forget to make your credit card payment. Exactly how much will this little mistake cost you in fees? _ ______________________________________________________________________________ 8. You make your credit card payment and head down the Amalfi coast. One day, while relaxing at the spiaggia (beach), you pull out your cell phone and check your credit card account. You are surprised when you see that your purchase APR has changed to 28.99%. What happened? How long will this rate be in effect? _ ______________________________________________________________________________ _ ______________________________________________________________________________ 9. You arrive home from your Italian tour. On the way home from the airport, you realize you have no American cash — only euros — in your wallet. You use your credit card to get $500 at the ATM. What fee applies to this cash advance? What APR? (The prime rate is 3.5%.) _ ______________________________________________________________________________ _ ______________________________________________________________________________ 10. You had so much fun on your dreamy Italian vacation that you immediately started planning your next trip. You used your credit card to make a $1000 deposit on Spring Fling in Finland. You want to avoid paying any interest on that charge. What must you do? _ ______________________________________________________________________________ _ ______________________________________________________________________________ PRODUCT PREVIEW
11. T F Small credit card balances with steady repayments in full, are a great way to build a credit history.
12. A rule of thumb most experts recommend is to pay the credit card bill with the __________ APRs first.
13. To maintain good credit and manageable debt, the credit utilization rule of thumb is to use no more than _____% of the card's credit limit. a. 10 c. 75 b. 50 d. 30
Chapter 13 | Credit Card Craze 258
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