Question

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 will save money if you pay the balance off quickly.
You will save money if you pay the balance off quickly.

You cannot use them to buy something that costs more money that you have in the bank.

Answer 1

You will save money if you pay the balance off quickly.

Explanation: credit cards charge interest (often much higher than 3–5% APR) on unpaid balances, so paying the balance quickly or in full each month reduces or avoids finance charges. The other statements are false.