25
QuizMultiple Choice

N/A — Exam

Question 25 • Personal Finance and Economics

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

A debit card uses money already in Davis’s bank account, so it does not create interest charges. He can also use a credit card without paying interest if he pays the entire balance by the due date. Making payments over several months, as in choice D, may lead to interest charges.

AI-written and checked against the verified answer.

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