Asked by k

uestion 1 (1 point)

 

Which is the correct description for a credit card?

Question 1 options:

It allows you to pay for goods immediately.

It defers payment for one month only.

It defers payment indefinitely provided you maintain interest payments.

It allows you to borrow money at a cheap rate.

Question 2 (1 point)

 

One difference between a debit card and a credit card is that _____.

Question 2 options:

payments made with a debit card are immediately deducted from your bank account

debit cards provide better consumer protection

debit cards can only be used for large transactions

debit cards generate unsecured debt

Question 3 (1 point)

 

Arianna wanted to buy a $500 prom dress, but didn't have the money. She decided to buy the dress anyway, using a credit card. She told a friend, "I'll just pay it off a little at a time." Her friend, who knew more about credit cards than Arianna, gave her a warning. Select the warning that is most accurate.

Question 3 options:

You shouldn't buy clothing on credit because clothing companies prefer cash.

If you pay off the debt over time you'll wind up spending much more than $500 because of the interest you'll owe.

If you use a credit card to buy a prom dress your credit rating will drop.

Once you use a credit card to buy a prom dress you won't be able to stop buying things.

Question 4 (1 point)

 

How much should you pay on your credit card?

Question 4 options:

You should pay only the minimum payment.

You should pay as much as you can, striving to pay more than the minimum payment.

You are legally required to pay the balance in full before your grace period ends.

You should pay interest and fees plus 10% of the principle.

Question 5 (1 point)

 

Favi and Roy share a credit card with a limit of $2,000. The balance on the credit card was at $1,000, and Roy decided to splurge by using the card to pay for a shopping spree that cost $1,250. Favi was surprised to find that, in addition to owing $2,250 on the card, she also owed _____.

Question 5 options:

the APR

an over-the-limit fee

late payment penalties

an annual fee

All Answers 1

Answered by GPT-5 mini AI
1. It defers payment indefinitely provided you maintain interest payments.
2. payments made with a debit card are immediately deducted from your bank account
3. If you pay off the debt over time you'll wind up spending much more than $500 because of the interest you'll owe.
4. You should pay as much as you can, striving to pay more than the minimum payment.
5. an over-the-limit fee