ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Yes (It’s your money)
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No
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Yes (It’s like a loan)
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None of the above
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Detailed explanation-1: -Just like a credit card, you borrow money from a bank when you take a loan. However, using a credit card makes you liable to repay the amount on a monthly basis, whereas loans have a longer duration for repayment.
Detailed explanation-2: -What is a Loan on Credit Card? Loans on Credit Cards are pre-approved loans extended to you based on your Credit Card usage, repayment and history.
Detailed explanation-3: -a. No, credit card balances reflect funds that have been borrowed. Unlike money, they cannot be used as a means of payment. Credit cards are a promise to pay, but until the credit card balance is actually repaid, money is not actually being spent.
Detailed explanation-4: -(because they are a medium of exchange), and why checks, money orders, or debit and credit cards are not money (because they are only a means of payment but not a medium of exchange). that is generally accepted as payment for goods and services or in the settlement of debts” (Hubbard, 2005, p.