ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Interest is charged for the use of a credit card.
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Consumers can purchase things now, and pay for them later in the event of an emergency.
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You could be a victim of identity theft.
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None of the above
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Detailed explanation-1: -The biggest advantage of a credit card is its easy access to credit. Credit cards function on a deferred payment basis, which means you get to use your card now and pay for your purchases later. The money used does not go out of your account, thus not denting your bank balance every time you swipe.
Detailed explanation-2: -Building credit, earning cash back and benefiting from fraud protection are just a few of the many advantages of using credit cards.
Detailed explanation-3: -Consumer credit provides access to more spending power, which enables you to do things like take out a home loan or make purchases with a credit card. Responsible use of consumer credit can open doors to new opportunities, but borrowing also has the potential to result in unmanageable levels of debt.
Detailed explanation-4: -Credit cards are often more convenient and secure than carrying cash. As long as you can pay your bill in full each month, using a credit card is typically more advantageous than using cash for in-person purchases. You need to use a credit card for online transactions as you can’t pay in cash.
Detailed explanation-5: -You’ll be more secure using a credit card, you could get some protections on your purchase, and you can earn cash or points back on your spending through credit card rewards.