5
AssignmentMultiple Select

Financial Responsibility

Question 5 • Personal Finance - EL3403

Choose the advantages of using a credit card. Check all that apply.

Answer
A
builds credit history
B
no monthly payments
C
no interest fees
D
small payments over time
E
emergency funds intact

Explanation

Using a credit card responsibly and paying on time can build your credit history. It can also let you spread a purchase into smaller payments and keep cash available for emergencies. Credit cards do require monthly payments, and carrying a balance may result in interest fees, so “no monthly payments” and “no interest fees” are not advantages you can count on.

AI-written and checked against the verified answer.

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