3
QuizMultiple Choice

The Cost of Credit

Question 3 • 2027 Ignite Financial Literacy-Personal Finance - EL3403

Which is a desirable characteristic to look for when choosing a credit card?

Answer
A
no grace period
B
low down payment
C
no annual fee
D
high interest rate

Explanation

A credit card with no annual fee does not charge a yearly cost just for having the card, making it a desirable feature. A high interest rate and no grace period can make borrowing more expensive. A down payment is generally not a standard feature of credit cards.

AI-written and checked against the verified answer.

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