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QUESTION 28 If a credit card user wants to avoid financial troubles, which of the following is most important? a. pay the minimum balance due

QUESTION 28

If a credit card user wants to avoid financial troubles, which of the following is most important?

a.

pay the minimum balance due on the card each month

b.

pay the full balance due on the card each month

c.

choose the card with the lowest annual fee

d.

choose the card that offers the most bonus points for travel

QUESTION 29

If one does not budget and save regularly for unexpected expenses, the alternative is likely to be

a.

inconsequential, because bad things do not happen if you do not plan for them.

b.

deferral of the costs of an unexpected event until a time when it is more convenient to pay.

c.

running up credit card balances or borrowing funds on highly unfavorable terms.

d.

all of the above.

QUESTION 31

If an individual has an outstanding balance on a credit card at 15 percent interest, money in a savings account earning 5 percent, and an opportunity to invest some money earning a 12 percent return, the individual should

a.

use all available funds in the investment opportunity.

b.

pay a small amount on the credit card and save the rest.

c.

use all available funds, including savings, to pay off the credit card.

d.

put an equal amount of money toward each option.

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