Lois bought clothing at a store. She did not have enough in her bank account to pay for the purchase. After receiving the bill a
nd paying off the balance, she realized that she paid $9.69 in interest. Which statement is true about her method of payment? Lois used a debit card to make the purchase. Lois used a credit card to make the purchase. Lois either used a debit card or used a credit card and paid the balance in full when the bill arrived. Lois either used a debit card or used a credit card and made a single payment.
<span>Lois used a credit card to make the purchase.
One can't purchase an item that costs more than the balance in a debit card. The debit card is equivalent to cash on hand. You can only spend what you have.
The credit card is equivalent to a loan. You don't have the money as of the moment but when you use the credit card, you owe the issuing bank the amount you've put on credit. The bank will pay the merchant and you will pay the bank. Interest is an additional expense when you pay your bill beyond the due date. The interest is applied on the amount outstanding upon the payment due date. </span>
