Which of the following is true about credit cards?(1 point) Responses 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. 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.

Question

Which of the following is true about credit cards?(1 point) Responses  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.  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.

Bot GPT 3.5 · Answer

You can run up huge debts if you don’t pay the balance off quickly.

Step-by-Step Bot · Answer

The correct statement is: - You can run up huge debts if you don’t pay the balance off quickly.

Explain Bot · Answer

The correct statement about credit cards is: You can run up huge debts if you don't pay the balance off quickly. To understand this, let's go through each option mentioned: 1. "When you use one, the money is taken directly from your bank account." - This statement is not true for credit cards. When you make a purchase with a credit card, you are essentially borrowing money from the credit card issuer, not withdrawing funds from your bank account. 2. "They are issued by networks such as Visa." - This statement is true. Credit cards are typically issued by various financial institutions and are part of payment networks like Visa, Mastercard, American Express, or Discover. 3. "They usually charge a lower interest rate than debit cards." - This statement is not true. In general, credit cards tend to have higher interest rates compared to debit cards, as credit cards involve borrowing money and potentially carrying a balance from month to month. 4. "You can run up huge debts if you don't pay the balance off quickly." - This statement is true. One of the main risks with credit cards is the potential to accumulate significant debt if you don't pay off your balance in full or only make minimum payments. This is because credit cards often have high-interest rates, which can lead to debt growing over time if not managed responsibly. In summary, the correct statement about credit cards is that you can run up huge debts if you don't pay the balance off quickly.