What is an advantage of using a credit card?(1 point)

Question

Responses

It will not affect your credit score or credit history
It will not affect your credit score or credit history

Since it is tied directly to your checking account, it prevents you from spending money you do not have
Since it is tied directly to your checking account, it prevents you from spending money you do not have

If you need to carry a balance, the interest rates are generally quite low (less than 5%)
If you need to carry a balance, the interest rates are generally quite low (less than 5%)

You can make an emergency purchase that you otherwise don’t have the money to pay for right now
You can make an emergency purchase that you otherwise don’t have the money to pay for right now
Question 2
A loan with a shorter term length will have __________ monthly payments, and you will pay __________ in total interest. (1 point)
Responses

higher, less
higher, less

higher, more
higher, more

lower, less
lower, less

lower, more
lower, more
Question 3
Which of the following is most likely to represent a fixed rate, secured debt?(1 point)
Responses

A student loan
A student loan

A credit card
A credit card

A prepaid debit card
A prepaid debit card

An auto loan
An auto loan
Question 4
Shira is trying to decide between getting a debit card, a prepaid debit card, and a credit card. Which statement is true? (1 point)
Responses

All 3 cards are completely different
All 3 cards are completely different

Debit cards and prepaid debit cards are the same
Debit cards and prepaid debit cards are the same

Debit cards and credit cards are the same
Debit cards and credit cards are the same

All 3 cards are completely the same
All 3 cards are completely the same
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Answer 1

Here are the answers to your questions:

Question 1: What is an advantage of using a credit card?

• You can make an emergency purchase that you otherwise don’t have the money to pay for right now.

Question 2: A loan with a shorter term length will have __________ monthly payments, and you will pay __________ in total interest.

• higher, less

Question 3: Which of the following is most likely to represent a fixed rate, secured debt?

• An auto loan

Question 4: Shira is trying to decide between getting a debit card, a prepaid debit card, and a credit card. Which statement is true?

• All 3 cards are completely different.

Feel free to ask if you have more questions!