Question

which credit card term is correctly matched with its explanation?
annual fee: a fixed fee charged to consumers by credit card companies for using their cards.
minimum amount due: the amount a person must pay each month on a credit - card bill in order to avoid having a balance owed on the card.
due date: the date a check is written to pay the minimum amount due on a credit card.
credit limit: the interest rate charged once a year based on the unpaid credit card balance.

Explanation:

• Annual Fee: A fixed fee charged by credit - card companies for using their cards, which is correct as stated.
• Minimum Amount Due: It is the minimum amount a person must pay each month on a credit - card bill to avoid penalties, not the entire balance owed.
• Due Date: It is the date by which the payment (not the date a check is written) for the minimum amount due or full balance must be made.
• Credit Limit: It is the maximum amount a cardholder can borrow on the credit card, not an interest rate.

Answer:

Annual Fee: a fixed fee charged to consumers by credit card companies for using their cards.