One Disadvantage of Having Credit Cards for Personal Use Is

question 62

Multiple Choice

One disadvantage of having credit cards for personal use is that

• A) they offer no protection if they are stolen.
• B) they are less convenient than other forms of credit.
• C) many companies have a policy that prevents employees from having both personal credit cards and credit cards for business use.
• D) they can make it easy to pile up a large amount of debt quickly.

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Definitions:

Individual Decision Making

The process by which an individual selects among alternative choices based on preferences, resources, and information.

Costly Temptations

Expenses incurred from yielding to desires that can lead to negative financial consequences.

Repeated Mistakes

The act of making the same errors multiple times, often hindering progress or learning in any context.

Neoclassical Economics

Neoclassical economics is a school of thought that emphasizes rationality, market equilibrium, and the efficiency of markets in allocating resources.