4
QuizMultiple Choice

Managing Credit and Debit — Test

Question 4 • Personal Finance

The type of credit people are most likely to use for small purchases during their lifetime is

Answer
A
an auto loan.
B
a credit card.
C
a personal loan.
D
a mortgage.

Explanation

Credit cards are commonly used for everyday, relatively small purchases and can be used repeatedly as the balance is paid down. Mortgages and auto loans are usually for large, specific purchases, while personal loans are typically for a set amount borrowed at once. Therefore, the correct choice is a credit card.

AI-written and checked against the verified answer.

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