What small plastic card linked to an account has a limited amount of money available to borrow, and the cardholder can use the card to make purchases and then pay the money back later?

• A. Debit card
• B. Prepaid card
• C. Credit card
• D. Credit report

Answer: (C)

Borrowing up to a set limit and paying back later is the defining feature of a credit card. It’s a small plastic card tied to a revolving line of credit from a lender, which lets you make purchases up to your credit limit and repay the amount over time. If you don’t pay in full each billing cycle, interest accrues on the remaining balance. This differs from a debit card, which spends money you already have in your bank account, and from a prepaid card, which must be funded before use. A credit report isn’t a card at all; it’s a record of your borrowing history. So the best match for the description is a credit card.