Which of the following is true about credit cards?(1 point) Responses They usually charge a lower interest rate than debit cards. They usually charge a lower interest rate than debit cards. 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. 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. They are issued by networks such as Visa.
They are issued by networks such as Visa.
The true statement about credit cards from the options provided is: They are issued by networks such as Visa.
The correct answer is: They are issued by networks such as Visa.
To determine the correct answer, we can analyze each statement.
Statement 1: "They usually charge a lower interest rate than debit cards" - This statement is incorrect. Credit cards generally have higher interest rates compared to debit cards.
Statement 2: "You can run up huge debts if you don’t pay the balance off quickly" - This statement is true. If you carry a balance on your credit card and only make minimum payments, the interest charges can accumulate, resulting in a significant debt.
Statement 3: "When you use one, the money is taken directly from your bank account" - This statement is incorrect. Debit cards are directly linked to your bank account, where the money is deducted immediately upon making a transaction. Credit cards, on the other hand, allow you to borrow money from the card issuer.
Statement 4: "They are issued by networks such as Visa" - This statement is true. Credit cards are typically issued by networks like Visa, Mastercard, American Express, or Discover. These networks provide the infrastructure for transactions to take place and facilitate communication between merchants, card issuers, and cardholders.
Therefore, the correct statement is: They are issued by networks such as Visa.