Understanding Cash,
Credit & Checks
Economics in Action
Credit Terminology
Total credit line – the maximum amount that can be
charged.
Total available credit – Total credit line minus the
new balance.
Cash limit – maximum amount that can be used as a
cash advance
Cash available – cash limit minus new balance
Credit Terminology
Amount past due – any amount that was not paid on time
Statement closing date – the date of the last purchase
billed on this statement
New balance – what is now owed
Payment due date – date by which the minimum payment
must be made
Minimum payment – the least amount that must be paid
to avoid penalty
Previous balance – last month’s balance
Credit Terminology
Payments – how much was paid in the last billing period
Other credits – any refunds posted to the account in the last billing
period
Purchases – total amount spent in this billing cycle; this is itemized
in another part of the statement
Cash advances – amount charged to this account for cash received
Other fees – late fees or other service charges
Finance charge – interest incurred on previous balance
Grace period – time when no interest is charged on new purchases
if the new balance is paid in full by the payment due date
Use your note organizer
You are getting ready to view several short videos.
As you view the videos, be sure to take notes on the
hand-out titled “Advantages and Disadvantages of
Various Methods of Payment”
Listen carefully to each video so that you can take
effective notes.
How Credit Cards Work
Watch this short video:
http://www.youtube.com/watch?v=qAQnIwSeih8
How Credit Card
Payments Work
http://www.youtube.com/watch?v=8SQ3qst0_Pk
Credit Card Processing
http://www.youtube.co
m/watch?v=ugcBKfbjmC
k
How Checks and
Checking Accounts
Work
http://www.youtube.co
m/watch?v=D9wq_5JrYc
Y
Next
Look at the rubric you’ve been given called “Assessment.”
You will become part of a panel where you will discuss the
advantages and disadvantages of cash, credit & checks.
Your group will write a script, and you will record yourselves on
the panel.
You will need to include all of the terminology given to you at
the beginning of the power point.
You will need to include the advantages and disadvantages of
each topic.
Your video will need to be an educational teaching tool.
Panel/Video
Requirements
3-4 minutes in length
All terminology used
Disadvantages & Advantages discussed from each
topic
Use information from 221-235 in your discussion
Each person has a clearly defined role
Each presentation has a script
DUE
December 18, 2013
You will present on December 20,
2013.
You may need to work on this at
home as well through the use of
Google Docs.