Which of the following is true of credit
cards?
(1 point)
You cannot use them to buy something that costs more money that you have in the bank.
They generally charge 3% to 5% interest.
When you use them,
• you never really know how much you owe.
They can be used to make online purchases.
They can be used to make online purchases.
The correct answer is: They can be used to make online purchases.
To determine which statement is true about credit cards, let's analyze each option:
1. "You cannot use them to buy something that costs more money than you have in the bank."
The accuracy of this statement depends on the type of credit card. If you have a secured credit card, your credit limit is usually equal to the amount of money you have deposited with the bank. This means you cannot spend more than what you have in the bank. However, for unsecured credit cards, you can typically spend beyond the amount you have in the bank, up to your credit limit. So, this statement is not always true.
2. "They generally charge 3% to 5% interest."
This statement is partially true. Credit cards do charge interest, but the interest rate can vary significantly. Different credit cards have different rates depending on factors such as the type of card, your creditworthiness, and the card issuer's terms and conditions. The interest rate can be higher or lower than the range mentioned in the statement.
3. "When you use them, you never really know how much you owe."
This statement is not true. Credit cards provide monthly statements that detail your balance, available credit, and any transactions made during the period. These statements help you keep track of your purchases and the amount you owe. It is essential to review these statements regularly to stay informed about your credit card balance.
4. "They can be used to make online purchases."
This statement is generally true. Credit cards are widely accepted for online purchases, providing a convenient and secure payment method for numerous e-commerce platforms.
Upon evaluating these options, the correct statement about credit cards is:
"They can be used to make online purchases."