In which of these sentences are quotation marks used incorrectly?

A. "Neither a lender nor a borrower be," he said
B. Raising her hand in warning, she said, "Be gone, you wicked spirit."
C. "I could not believe she said, 'I never worry,'" Kate muttered.
D. "What can you possibly mean by that"! she stormed.

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http://grammar.ccc.commnet.edu/grammar/marks/quotation.htm

To determine which of these sentences uses quotation marks incorrectly, we need to understand the proper rules for using quotation marks. Quotation marks are typically used to indicate direct speech or to enclose a quotation from another source. Here's how we can analyze each option to find the answer:

A. "Neither a lender nor a borrower be," he said.
In this sentence, the quotation marks are used correctly because they enclose the direct speech.

B. Raising her hand in warning, she said, "Be gone, you wicked spirit."
This sentence also uses quotation marks correctly because they enclose the direct speech.

C. "I could not believe she said, 'I never worry,'" Kate muttered.
In this sentence, there are quotation marks within quotation marks. This is correct because the outer quotation marks enclose the direct speech, while the inner quotation marks enclose the quotation from another source.

D. "What can you possibly mean by that"! she stormed.
In this sentence, the quotation marks are used incorrectly. The exclamation mark should be placed inside the quotation marks to indicate that it is part of the quoted speech.

Therefore, the sentence that uses quotation marks incorrectly is D. "What can you possibly mean by that"! she stormed.