After reading both articles, what is one way credit card companies make money?(1 point)

Question

Responses

By selling credit cards in stores
By selling credit cards in stores

By charging fees when customers don’t pay back borrowed money
By charging fees when customers don’t pay back borrowed money

By offering rewards points to customers
By offering rewards points to customers

By giving away free credit card machines
By giving away free credit card machines
Question 2
According to the article "A Big Credit Card Buy," why might Elizabeth Warren be concerned about the deal between Capital One and Discover?(1 point)
Responses

She believes it could harm competition and lead to higher fees for customers.
She believes it could harm competition and lead to higher fees for customers.

She thinks Discover has too many customers for Capital One to handle.
She thinks Discover has too many customers for Capital One to handle.

She is worried about the companies not having enough money for the deal.
She is worried about the companies not having enough money for the deal.

She believes the deal will increase competition and harm smaller companies.
She believes the deal will increase competition and harm smaller companies.
Question 3
In the article "All About Credit Cards," how does Matt Schulz's advice about using credit cards demonstrate responsible financial habits?(1 point)
Responses

He encourages avoiding credit cards entirely to stay out of debt.
He encourages avoiding credit cards entirely to stay out of debt.

He suggests learning how credit cards work before getting one and paying off debt quickly if it occurs.
He suggests learning how credit cards work before getting one and paying off debt quickly if it occurs.

He recommends using credit cards for expensive purchases only.
He recommends using credit cards for expensive purchases only.

He advises borrowing as much as possible to build good credit quickly.
He advises borrowing as much as possible to build good credit quickly.
Question 4
Which of the following statements is a key message shared in both articles?(1 point)
Responses

Credit cards can be very helpful when used correctly, but they can lead to serious financial problems if not managed properly
Credit cards can be very helpful when used correctly, but they can lead to serious financial problems if not managed properly

Credit card companies should not be allowed to charge interest on unpaid balances
Credit card companies should not be allowed to charge interest on unpaid balances

Credit cards are only useful for in-person shopping
Credit cards are only useful for in-person shopping

Credit card deals will always be approved by U.S. officials without concern for consumers
Credit card deals will always be approved by U.S. officials without concern for consumers
Question 5
Which of the following is a common concern expressed in both articles?(1 point)
Responses

Credit cards are always beneficial and easy to use
Credit cards are always beneficial and easy to use

Not paying back credit card debt can lead to high fees
Not paying back credit card debt can lead to high fees

Credit cards are only used in stores, not online
Credit cards are only used in stores, not online

The U.S. government is planning to regulate credit card companies
The U.S. government is planning to regulate credit card companies
Question 6
Using what you've previously learned in Live Lesson regarding credit cards and loans, which of the following is a key difference between using a credit card and getting a loan?(1 point)
Responses

With a credit card, you should pay the full amount back all at once, while a loan repayment is created for you to pay back smaller amounts over time.
With a credit card, you should pay the full amount back all at once, while a loan repayment is created for you to pay back smaller amounts over time.

A credit card gives you money upfront to spend on purchases, while a loan gives you a card to make purchases.
A credit card gives you money upfront to spend on purchases, while a loan gives you a card to make purchases.

Credit cards usually have a fixed amount of money you can borrow, while loans let you borrow as much as you want.
Credit cards usually have a fixed amount of money you can borrow, while loans let you borrow as much as you want.

Loans are used for small purchases, like a pair of shoes; while credit cards are used for large purchases, like a car.
Loans are used for small purchases, like a pair of shoes; while credit cards are used for large purchases, like a car.
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Answer 1

Here are the answers based on the articles and the information provided:

Question 1: One way credit card companies make money is:

• By charging fees when customers don’t pay back borrowed money.

Question 2: According to the article "A Big Credit Card Buy," why might Elizabeth Warren be concerned about the deal between Capital One and Discover?

• She believes it could harm competition and lead to higher fees for customers.

Question 3: In the article "All About Credit Cards," how does Matt Schulz's advice about using credit cards demonstrate responsible financial habits?

• He suggests learning how credit cards work before getting one and paying off debt quickly if it occurs.

Question 4: Which of the following statements is a key message shared in both articles?

• Credit cards can be very helpful when used correctly, but they can lead to serious financial problems if not managed properly.

Question 5: Which of the following is a common concern expressed in both articles?

• Not paying back credit card debt can lead to high fees.

Question 6: Using what you've previously learned in Live Lesson regarding credit cards and loans, which of the following is a key difference between using a credit card and getting a loan?

• With a credit card, you should pay the full amount back all at once, while a loan repayment is created for you to pay back smaller amounts over time.

If you need further assistance or clarification, feel free to ask!