4
QuizMultiple Choice

Understanding Credit — Unit test

Question 4 • Personal Finance - EL3403

Which is considered a good credit practice?

Answer
A
Use the credit card with the highest interest rate.
B
Make late payments.
C
Pay more than the minimum amount that is due.
D
Borrow more than one can afford to repay.

Explanation

Paying more than the minimum due reduces the balance faster and can lower the total interest you pay. The other choices—using a high-interest card, making late payments, or borrowing more than you can repay—can increase costs or harm your credit.

AI-written and checked against the verified answer.

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