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Please answer True or False to the following questions: 1. Credit means someone is willing to loan you money in exchange for a promise to pay it back with interest. True    False 2. Credit card payments and any other loans you have (excluding a mortgage) should add up to less than 30% of your net income. True    False 3. When repaying a credit card, the biggest cost of using credit is the interest rate, so it pays to shop around. True    False 4. The longer it takes to pay a credit card balance, the more you will pay in finance charges. True    False 5. The credit limit is the maximum amount that you can charge on a credit card. True    False 6. Maintaining a good credit report is your first step in guaranteeing loans in the future. If you handle credit responsibly, lenders will be more willing to extend more credit in the future. True    False 7. Having a co-signer relieves you of financial responsibility and only the co-signer is responsible legally and financially. True    False 8. Lenders check credit reports to make loan decisions. Employers may not use credit reports to help make hiring decisions. True    False 9. Many cards offer a grace period, which is the number of days during which no interest or finance charges apply. True    False 10. When trying to pay down debt, you should pay off the debt that has the lowest interest rate first. True    False Use the information given below to answer questions 11 through 15: Annual Fee None Annual Percentage Rate (APR) 14.9% Grace Period You have 25 days to repay your balance before a finance charge will be imposed.* Minimum Payment $30 or 3% of the outstanding balance Transaction Fees Cash Advance: 2% of advance amount ($3 minimum)** Late payment fee (15 days or more): $15 Over limit fee: $10 Credit Limit $500 * Interest starts accruing from the date of the cash advance. ** Cash advance fee is waived if done as a transfer through home banking or Moneyline. You decide to purchase a new digital camera for $287.23 and charge it to your Visa. 11. Assuming the digital camera is the only balance on your credit card, how much will your monthly payment be? $43 $30 $9 $144 12. The entire balance is paid within 20 days of purchase. The amount that you will pay is: $287.23 $330.03 $287.43 $330.26 13. If you only make the minimum payment each month and have not made any new purchases, how long will it take you to pay off the camera? 9 months 10 months 11 months One Year 14. The maximum amount that you can charge on your credit card is: $200 $300 $400 $500 15. You have a financial emergency and need to make a cash advance of $300 at your credit union. The cash advance fee will be: $3 $6 $10 Free