Which term describes a plastic card that allows a purchase to be charged and paid later?

Which term describes a plastic card that allows a purchase to be charged and paid later?

• A. Debit Card
• B. Balance
• C. Credit Card
• D. Withdrawal

Answer: (C)

Credit cards let you buy things now and pay for them later, up to a set limit. When you use one, the issuer lends you the money for the purchase, and you receive a bill showing what you owe and when it’s due. If you don’t pay the full balance on time, interest can be charged on what’s left. A debit card, by contrast, spends money you already have in your account, not borrowed funds. Balance is a general term for how much money you owe or have left, not the name of a card. Withdrawal means taking out cash, not charging a purchase to be paid later. So, the term that fits a plastic card that allows a purchase to be charged and paid later is credit card.

Credit cards let you buy things now and pay for them later, up to a set limit. When you use one, the issuer lends you the money for the purchase, and you receive a bill showing what you owe and when it’s due. If you don’t pay the full balance on time, interest can be charged on what’s left. A debit card, by contrast, spends money you already have in your account, not borrowed funds. Balance is a general term for how much money you owe or have left, not the name of a card. Withdrawal means taking out cash, not charging a purchase to be paid later. So, the term that fits a plastic card that allows a purchase to be charged and paid later is credit card.