What is the difference between a charge card and a credit card?(1 point)

Question

Responses

A charge card has a revolving line of credit while a credit card is paid off each month.
A charge card has a revolving line of credit while a credit card is paid off each month.

A charge card has zero interest while a credit card has a high interest.
A charge card has zero interest while a credit card has a high interest.

A charge card is issued by a bank while a credit card is issued by a merchant.
A charge card is issued by a bank while a credit card is issued by a merchant.

A charge card is paid off each month while a credit card has a revolving credit line.
A charge card is paid off each month while a credit card has a revolving credit line.

Answer 1

The correct response is:

A charge card is paid off each month while a credit card has a revolving credit line.

Explanation: A charge card requires the total balance to be paid in full each month, while a credit card allows for a balance to be carried over, resulting in potential interest charges if not paid in full.