2
QuizMultiple Choice

Understanding Credit

Question 2 • 2027 Ignite Financial Literacy-Personal Finance - EL3403

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 $9.69 in interest. Which statement is true about her method of payment?

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

Explanation

A debit card uses money directly from a bank account, so it would not create a bill with interest. Lois was billed and paid $9.69 in interest, which means she borrowed money through a credit card and did not avoid interest by paying the full balance by the due date. Therefore, the true statement is that Lois used a credit card to make the purchase.

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