10
QuizMultiple Choice

How Credit Works

Question 10 • ***CPS Online Personal Finance fall – 3-2027

Read the information about two competing credit cards. Credit Card 1Credit Card 2Interest rate0% introductory rate, then 13.8% after one year12.1%Annual feeNoneNo annual fee in the first year, then $30 each year thereafterCredit Card 1 would be the better option if the borrower

Answer
A
had major expenses in the first year.
B
spent a lot of money in the second year.
C
used the card regularly in the long term.
D
carried a large balance in the long term.
Read the information about two competing credit…