Which of the Following Is True with Respect to Revolving

question 34

Multiple Choice

Which of the following is true with respect to revolving charge accounts?

• A) A down payment is normally required.
• B) Charged purchases may not exceed the credit limit.
• C) A fixed amount must be paid monthly, regardless of the outstanding balance.
• D) Finance charges increase as the outstanding balance increases.

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Definitions:

Chance

The occurrence of events in the absence of any obvious intention or cause.

Drink Tea

The action of consuming tea by drinking.

Drink Seltzer

Refers to the act of consuming seltzer water, a carbonated drink that may be flavored but does not contain alcohol.

Own A Car

Refers to the state or condition of having legal ownership and possession of an automobile.