19
QuizMultiple Choice

Entrepreneurship

Question 19 • Personal Finance - EL3403

Consumers who pay more than the minimum payment on credit cards

Answer
A
pay less interest in the long run.
B
are able to buy more things.
C
see their credit scores decrease.
D
qualify for mortgages.

Explanation

Paying more than the minimum reduces the balance on a credit card faster. Since interest is charged on the unpaid balance, a smaller balance means less interest accumulates over time. So consumers who pay more than the minimum payment pay less interest in the long run.

AI-written and checked against the verified answer.

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