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8. The average interest rate for credit cards in the United States is approximately: a. 23% c. 15% b. 10% d. 6% 9. Some retailers, like Sears, offer retail credit cards which are linked to customer ___________ programs. a. service c. loyalty b. credit improvement d. none of the above 10. On average, the grace period for credit cards usually lasts ____ days. a. 7 c. 90 b. 21 d. 15 11. Raul makes only minimum payments on his credit card. He doesn’t understand why it is taking so long to pay it off! Explain how compounding works against a card holder when they make only minimum payments. _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ 12. You are a very busy person and tend to forget dates and deadlines. You realize one of the most important deadlines you face each month is your credit card payment due date. What can you do to make sure you don’t miss it? a. Go into your card account and set alerts to warn you several days before your payment is due. b. Put the payment due date in your calendar or e-planner. c. Set up an automated credit card payment through your bank or credit card company. d. All of the above. 13. Yusuke has a poor credit score. He says that he does not want to get a credit card, because the only card he is eligible for has a high interest rate. He thinks that having a credit card will not improve his credit score. Is Yusuke’s reasoning correct? How can he improve his credit score? Explain your answer. _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ PRODUCT PREVIEW
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THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY 261
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