From their clients' credit card accounts

From their clients' savings accounts

From the Federal government

From their own money vaults

They charge a large, one-time fee at the start of the loan

They take out a small fee each month from your checking account

They charge a high interest rate on the loan

This is a trick question - they DON'T make money!

Mortgage

Overdraft

Credit Card

Pre-Paid Debit Card

Auto Loan

Student loan

Credit Card Balance

Overdraft

Because they usually have a higher interest rate

Because they usually have a lower interest rate

Banks give you an extra 90 days to make a missed payment

Banks typically don't charge interest for the first 12 months

Your relationship with the financial institution

Your credit score

The loan amount

Your level of education

True

False

The institution trusts you more, so they lower the interest

With each payment, principal increases; so interest lowers

Banks are legally required to lower interest rates over time

With each payment, principal decreases, so interest lowers

It summarizes information like interest rates, fees, and grace periods

It summarizes how much interest you have accrued in the last 90 days

It gives a detailed explanation of your credit history

It tracks your spending habits to help you find ways to budget your money

Always make the minimum payment over time

Pay interest 1st, then pay what you can on leftover balance

Always make the full payment on time

Pay the principal 1st, then pay what you can on interest