8
AssignmentMultiple Choice

Understanding Credit

Question 8 • Personal Finance - EL3403

Martin used his credit card to buy a new bike. Which statement is true?

Answer
A
Martin borrowed money to buy the bike.
B
Martin paid cash at the store.
C
Martin used money from his checking account.
D
Martin saved money over time.

Explanation

Using a credit card means the card issuer pays the store and Martin must repay that amount later. So Martin borrowed money to buy the bike; he did not pay cash or directly use his checking account.

AI-written and checked against the verified answer.

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