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. 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. 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.
The correct statement about credit cards from the provided options is: You can run up huge debts if you don’t pay the balance off quickly.
The correct statement from the options provided is: "You can run up huge debts if you don’t pay the balance off quickly."
To arrive at this answer, we need to evaluate each statement and determine whether it is true or false.
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.
2. "When you use one, the money is taken directly from your bank account." - This statement is incorrect. When you use a credit card, the money is not taken directly from your bank account. Instead, it creates a debt that you will need to repay later.
3. "They are issued by networks such as Visa." - This statement is true. Credit cards are typically issued by payment networks such as Visa, Mastercard, American Express, etc.
4. "You can run up huge debts if you don’t pay the balance off quickly." - This statement is true. If you do not pay off your credit card balance promptly, interest charges will accumulate, and you can easily accumulate significant debt.
Based on the evaluation, the correct statement is: "You can run up huge debts if you don’t pay the balance off quickly."