Question

question 16
which defines a \credit limit\?
oa the total amount you are authorized to charge on a credit card. for instance, if your credit limit is $1,000, you could charge up to $1,000.
ob. how much you owe on your statement each month.
oc. the amount of time before your credit expires.
od. the amount of cash you can borrow on your credit card
question 17
i should do my best to get a credit card from a company that will tell me both my interest rate and my credit limit before i commit to taking the card.
o true.
o false.
question 18
if you make a late payment on a 0% interest credit card, youre only responsible for paying the interest from that point on.
o true.
o false.
question 19
which of these choices shows the smartest thinking?
oa i always use my credit card to finance purchases.
i use my credit card to build my credit and for convenience. but i try to never finance purchases with it. if i really do need to finance an important purchase, i go to my credit union or bank and try to get a loan that is much cheaper than financing on my credit card.
ob
edit card to finance my vacations and pay for the vacation
save and quit

Explanation:

1. Credit limit is the max charge - amount. 17. Knowing rate and limit is good. 18. Late - payment may have fees. 19. Option B is smart to avoid high - cost credit card financing.

Answer:

Question 16: A. The total amount you are authorized to charge on a credit card. For instance, if your credit limit is $1,000, you could charge up to $1,000.
Question 17: True.
Question 18: False.
Question 19: B. I use my credit card to build my credit and for convenience. But I try to never finance purchases with it. If I really do need to finance an important purchase, I go to my credit union or bank and try to get a loan that is much cheaper than financing on my credit card.