8
QuizMultiple Choice

Understanding Credit — Quiz

Question 8 • Personal Finance

Lois bought clothing at a store. She did not have enough in her bank account to pay for the purchase. After receiving the bill and paying off the balance, she realized that she paid 9 point 6 9 dollars in interest. Which statement is true about her method of payment?

Answer
A
Lois either used a debit card or used a credit card and made a single payment.
B
Lois used a debit card to make the purchase.
C
Lois either used a debit card or used a credit card and paid the balance in full when the bill arrived.
D
Lois used a credit card to make the purchase.

Explanation

A debit card draws money directly from a bank account, so it would not let Lois make a purchase when she lacked enough funds in that account. A credit card lets her borrow for the purchase, and carrying a balance can lead to interest charges. Since Lois paid $9.69 in interest, she used a credit card.

AI-written and checked against the verified answer.

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