ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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gives you access to money that you can borrow and pay back later with interest.
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does not charge interest.
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is linked to your bank account.
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does not have a limit.
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Detailed explanation-1: -Credit is the ability to borrow money and pay it back later, usually without interest. A good way to get started with credit is to open a checking account and get a debit card. Service credit is often provided by utility companies and doctors.
Detailed explanation-2: -The first way to borrow money from a credit card is by cash advance. If you are facing a financial emergency and don’t have any cash or your debit card with you, you can use your credit card to withdraw cash from the nearest ATM.
Detailed explanation-3: -Credit cards charge interest on any balances that you don’t pay by the due date each month. When you carry a balance from month to month, interest is accrued on a daily basis, based on what’s called the Daily Periodic Rate (DPR).
Detailed explanation-4: -Debt is anything owed by one party to another. Examples of debt include amounts owed on credit cards, car loans, and mortgages.