7
QuizMultiple Choice

How Credit Works

Question 7 • TX-Personal Financial Literacy and Economics

Interest rates on credit cards

Answer
A
can be paid annually.
B
change with the balance.
C
decrease with early payment.
D
can vary widely.

Explanation

Credit card interest rates differ substantially among cards and lenders, so they can vary widely. They are generally quoted as annual percentage rates, but interest is typically calculated and charged over billing periods, not paid once a year. The rate itself does not usually change just because the balance changes or you pay early.

AI-written and checked against the verified answer.

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