ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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borrow
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inherit
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steal
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give away
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Detailed explanation-1: -When a credit card is used to withdraw cash. It’s called a cash advance. A cash advance on a credit card incurs no application fees and for those who pay off their entire balance at the end of every month, credit cards can be a source of loans at a 0% interest rate.
Detailed explanation-2: -Using your credit card is like getting a loan. When you use your credit card to buy something, you are borrowing money. Some people use a credit card to buy things they cannot afford right now. Some people use a credit card to help build or improve their credit history.
Detailed explanation-3: -Debt is anything owed by one party to another. Examples of debt include amounts owed on credit cards, car loans, and mortgages.
Detailed explanation-4: -You’re essentially borrowing money to make purchases when you use a credit card. Any balance not paid back during the billing month accrues interest that must be paid. Debit cards are linked to a bank account.