ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The total amount she can charge on her cards is more than her ability to repay
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she pays the complete balance each month.
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She is extremely careful about disclosing account information to unsolicited callers.
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None of the above
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Detailed explanation-1: -Charge cards. Charge cards are usually issued by department stores and oil companies and, ordinarily, can be used only to buy products from the company that issued that card. They have been largely replaced with credit cards, although many are still in use. You pay your balance at your own pace, with interest.
Detailed explanation-2: -Following the guidelines below will help you maintain a good score or improve your credit score: Watch your credit utilization ratio. Keep credit card balances below 15%–25% of your total available credit. Pay your accounts on time and if you have to be late, don’t be more than 30 days late.
Detailed explanation-3: -Common examples of open-end credit are credit cards and lines of credit. As you repay what you’ve borrowed, you can draw from the credit line again and again. Depending on the product you use, you might be able to access the funds via check, card or electronic transfer.
Detailed explanation-4: -Supply and Demand. Interest rate levels are a factor of the supply and demand of credit: an increase in the demand for money or credit will raise interest rates, while a decrease in the demand for credit will decrease them.