Cards, Cars and Currency Inside the Vault Lesson Plan | Handout 1.1
Keep The Currency Statements
1. 2. 3. 4. 5. 6. 7. 8. 9. APR means “a purchase returned” and can refer to any purchase if the return is made within 10 days of the purchase. Collateral is required for an unsecured loan. Any person can secure and use a debit card. Consumers are likely to buy more cars when the terms of the contract offer lower interest rates. All credit cards are required by law to charge the same interest rate. A debit card has a revolving line of credit. Less than half of all consumers use a credit card. The Truth in Lending Act of 1969 requires banks to charge a fee for debit card overdrafts. The top incentive for college students when choosing a credit card is the offer of special store discounts.
10. The Fair Credit and Charge Card Disclosure Act of 1989 requires all credit card offers to have a 30-day grace period for making credit card payments. 11. A credit card is a secured loan. 12. “Caveat emptor” means having enough money to make the monthly payment. 13. The interest rates on car loans are usually lower than on unsecured loans because there is less risk to the lender. 14. The total amount of payments paid on a car loan will be different from the purchase price of the car because of finance charges. 15. Car dealers are more likely to sell more cars when the interest rate is high. 16. A rule of thumb is that a vehicle payment should be no more than 20 percent of your take home pay. 17. It is more advantageous to use a debit card than a credit card for purchases. 18. The most important factor to consider when choosing a credit card is the amount of the credit limit. 19. By law, lenders who provide car loans must charge all consumers the same fixed interest rate on contracts issued on the same day. 20. Most overdraft charges on bank accounts occur because checks were written when there was not enough money in the account to cover the checks.
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Cards, Cars and Currency Inside the Vault Lesson Plan | Handout 1.1 Answer Key
Keep The Currency Statements
1. 2. 3. 4. 5. 6. 7. 8. 9. APR means “a purchase returned” and can refer to any purchase if the return is made within 10 days of the purchase. False APR means annual percentage rate. Collateral is required for an unsecured loan. False An unsecured loan means there is no collateral. Any person can secure and use a debit card. False A person must have a checking account. Consumers are likely to buy more cars when the terms of the contract offer lower interest rates. True Lower interest rates would be an incentive to buy because you would spend less money. All credit cards are required by law to charge the same interest rate. False Different credit cards have different terms. A debit card has a revolving line of credit. False A debit card is a transaction that is deducted electronically from a cardholder’s bank account. Less than half of all consumers use a credit card. False Approximately 79 percent of all consumers use a credit card. The Truth in Lending Act of 1969 requires banks to charge a fee for debit card overdrafts. False The Truth in Lending Act mandates disclosure of information about the cost of credit. The top incentive for college students when choosing a credit card is the offer of special store discounts. False The top incentive for college students when choosing a credit card is the reward program offered by the card. (Special store discounts = 8 percent; reward program = 28 percent)
10. The Fair Credit and Charge Card Disclosure Act of 1989 requires all credit card offers to have a 30-day grace period for making credit card payments. False This act mandates a box on credit card applications that describes key features and costs. 11. A credit card is a secured loan. False A credit card requires no collateral. 12. “Caveat emptor” means having enough money to make the monthly payment. False The phrase means: let the buyer beware. 13. The interest rates on car loans are usually lower than on unsecured loans because there is less risk to the lender. True A car loan is secured by the car. The car can be repossessed if terms of the contract are not kept. 14. The total amount of payments paid on a car loan will be different from the purchase price of the car because of finance charges. True The total amount of payments is the purchase price of the car plus interest and finance charges. 15. Car dealers are more likely to sell more cars when the interest rate is high. False A low interest rate will be an incentive for consumers to buy more cars. 16. A rule of thumb is that a vehicle payment should be no more than 20 percent of your take home pay. True The rule of thumb is that a vehicle payment should be no more than 20 percent of your take home pay. 17. It is more advantageous to use a debit card than a credit card for purchases. False Both debit cards and credit cards have advantages according to personal decisions. 18. The most important factor to consider when choosing a credit card is the amount of the credit limit. False There are many important factors to consider, as stated on the disclosure statement. 19. By law, lenders who make car loans must charge all consumers the same fixed interest rate on contracts issued in the same day. False Consumers are charged an interest rate according to their credit history. 20. Most overdraft charges on bank accounts occur because checks were written when there was not enough money in the account to cover the checks. False Most overdraft charges on bank accounts are caused from debit cards and ATM withdrawals (46.3 percent). 10
Cards, Cars and Currency Inside the Vault Lesson Plan | Handout 1.2
Keep the Currency Score Sheet
Current total 1. 2. 3 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. +$5 +$5 +$5 +$5 +$5 +$5 +$5 +$5 +$5 +$5 +$5 +$5 +$5 +$5 +$5 +$5 +$5 +$5 +$5 +$5 –$5 –$5 –$5 –$5 –$5 –$5 –$5 –$5 –$5 –$5 –$5 –$5 –$5 –$5 –$5 –$5 –$5 –$5 –$5 –$5 +$10 +$10 +$10 +$10 +$10 +$10 +$10 +$10 +$10 +$10 +$10 +$10 +$10 +$10 +$10 +$10 +$10 +$10 +$10 +$10 –$10 –$10 –$10 –$10 –$10 –$10 –$10 –$10 –$10 –$10 –$10 –$10 –$10 –$10 –$10 –$10 –$10 –$10 –$10 –$10 $ __________ $ __________ $ __________ $ __________ $ __________ $ __________ $ __________ $ __________ $ __________ $ __________ $ __________ $ __________ $ __________ $ __________ $ __________ $ __________ $ __________ $ __________ $ __________ $ __________
Currency kept $ __________ Currency lost $ __________
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Cards, Cars and Currency Inside the Vault Lesson Plan | Handout 1.3
T
T T
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Cards, Cars and Currency Inside the Vault Lesson Plan | Handout 1.4
F
F F
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