Multiple choice general knowledge

A credit card with a margin of 3 points has…

  1. An APR of 3 percentage points above a specific interest rate index.

  2. A difference of 3 percentage points between the rate on purchases and cash advances.

  3. A minimum monthly payment of 3 percent of the total balance.

  4. I don't know!
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A Correct answer
Explanation

A credit card margin is the spread added to an index rate (like Prime Rate) to determine the APR. A 3-point margin means the APR is 3 percentage points above the reference index rate, not about differences between purchase/cash advance rates or minimum payment percentages.

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