Question

Which of the following is true of credit cards?(1 point) Responses They generally charge 3% to 5% interest. They generally charge 3% to 5% interest. When you use them, you never really know how much you owe. When you use them, you never really know how much you owe. You cannot use them to buy something that costs more money that you have in the bank. You cannot use them to buy something that costs more money that you have in the bank. You will save money if you pay the balance off quickly.

Answer 1

The statement that is true regarding credit cards is: "You will save money if you pay the balance off quickly."

This is true because credit cards typically have high-interest rates, and if you carry a balance, the interest can accumulate quickly. By paying off the balance in full each month, you can avoid interest charges altogether, effectively saving you money.

The other statements have inaccuracies:

• Credit card interest rates can vary widely, but they are often higher than 5%, and can exceed 20% or more.
• You can track how much you owe on a credit card through statements and online banking.
• You can use a credit card to purchase items beyond your current bank balance, as credit cards provide a line of credit up to a certain limit.