Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: Credit cards accrue interest charges on the outstanding balance if the cardholder does not repay the borrowed amount within the billing cycle. Reason R: Credit cards utilize a revolving credit feature that allows cardholders to borrow funds up to a limit and carry forward balances via minimum payments, unlike debit cards which immediately deduct the cardholder's own funds without extending credit. In the light of the above statements, choose the most appropriate answer from the options given below:

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Economics · Economy

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Both A and R are correct and R is the correct explanation of A

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Answer 1

A is not correct but R is correct

Answer 2

A is correct but R is not correct

Answer 3

Both A and R are correct and R is the correct explanation of A

Answer 4

Both A and R are correct but R is NOT the correct explanation of A

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