80
QuizMultiple Choice

Cumulative Exam — Cumulative exam

Question 80 • Personal Finance - EL3403

Davis is planning to buy a bike. He has the full amount in his bank account. He does not want to pay any interest on his purchase. Which option(s) can Davis use when making the purchase?

Answer
A
Use a debit card only.
B
Use a credit card only.
C
Use a debit card, or use a credit card and pay the balance in full when the bill arrives.
D
Use a debit card, or use a credit card and make payments over the next few months.

Explanation

Davis can pay directly from his bank account with a debit card, so he will not owe interest. He can also use a credit card and avoid interest by paying the entire balance when the bill arrives. Making payments over several months could leave an unpaid balance that accrues interest, so the correct choice is “Use a debit card, or use a credit card and pay the balance in full when the bill arrives.”

AI-written and checked against the verified answer.

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