Everfi Module 3 Questions and Answers
Graded A
What is a Money Order? ✔✔A way to pay up front so the check can't bounce
What is a debit card? ✔✔A card linked directly to your bank account
What is a cashier's check? ✔
...
Everfi Module 3 Questions and Answers
Graded A
What is a Money Order? ✔✔A way to pay up front so the check can't bounce
What is a debit card? ✔✔A card linked directly to your bank account
What is a cashier's check? ✔✔a check that comes directly out of your bank account, usually for a
fee
What is a credit card? ✔✔A card that let's you borrow money to make a purchase
What is a pre-paid card? ✔✔Type of credit card preloaded with money so you don't overspend
What is a Pay-Day Loan? ✔✔small amount of money lent at a high rate of interest on the
agreement that it will be repaid when the borrower receives their next paycheck
What are cash advances? ✔✔a loan from your credit card
Which payment type should you use when trying to budget? ✔✔debit card
What is APR? ✔✔charged amount on an unpaid credit amount
How do you find out what the APR is? ✔✔On the disclosure statement of the credit card
Why is a low APR better? ✔✔Because less money will be charged
What can increase your APR? ✔✔missing/late payments
What is a credit limit? ✔✔the maximum amount of credit you can spend
What does it mean if you make the minimum payment on your credit card? ✔✔you are paying
the least amount to pay off the major amount owed
Which payment types take money directly out of your checking account? ✔✔debit card
check ✔✔a wrtten, dated, and signed payment type that directs a bank to pay a definite sum pf
money to a payee
Cashier's Check ✔✔A payment type that is paid for upfront and guaranteed by the bank not to
bounce.
money order ✔✔a payment type that can be purchased at a variety of locations (convience
stores,banks, etc.)
debit card ✔✔A payment type that allows you to make electronic purchases that debit the cost of
the purchase directly from your checking account.
credit card ✔✔a payment type which the company provides a short-term loan that you can use to
make everyday purchases
Merchant Credit Card ✔✔A card that you sign up for at a store, which may offer discounts or
other rewards. These cards function like a
regular credit card.
charge card ✔✔A payment type that works just like credit cards except the balance must be paid
in full every month.
Prepaid card ✔✔A card that allows you to put a specific amount of money onto them. Prepaid
cards usually come with
additional fees and charges.
cash advance ✔✔A loan of cash you obtain with a credit card.
Payday Lenders ✔✔Payday lenders offer small cash loans, usually in the range of $100 to $500,
with payment due in full at the borrower's next paycheck.
interest ✔✔the fee someone pays to be able to borrow money
Credit History ✔✔a record of your past borrowing and repayments
Online Transfer ✔✔A transfer of funds from one account or individual to another through a
bank's website or mobile application.
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