Which of the following is true about credit cards?(1 point)

Question

Responses

You can run up huge debts if you don’t pay the balance off quickly.
You can run up huge debts if you don’t pay the balance off quickly.

They usually charge a lower interest rate than debit cards.
They usually charge a lower interest rate than debit cards.

They are issued by networks such as Visa.
They are issued by networks such as Visa.

When you use one, the money is taken directly from your bank account.

Answer 1

The true statement about credit cards is:

You can run up huge debts if you don’t pay the balance off quickly.

The other statements contain inaccuracies:

• They usually charge a lower interest rate than debit cards.: This is misleading because debit cards typically do not charge interest as they draw funds directly from your bank account.

• They are issued by networks such as Visa.: While credit cards can be associated with networks like Visa, they are issued by financial institutions, not just the networks themselves.

• When you use one, the money is taken directly from your bank account.: This is true for debit cards, not credit cards. Credit cards allow you to borrow money up to a limit, which you then need to pay back later.