Question

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

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

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

They usually charge a lower interest rate than debit cards.

Answer 1

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

Explanation: Credit cards let you borrow money to make purchases; if you carry a balance, interest accrues and can lead to large debt. The other statements are false or misleading: money isn’t taken directly from your bank account (that’s a debit card); cards are issued by banks/credit issuers and use networks like Visa for processing; debit cards don’t charge interest, so the interest-rate comparison is not applicable.