Which of the Following Is the Best Advice About the Use

question 14

Multiple Choice

Which of the following is the best advice about the use of credit cards?

• A) Except for very small purchases, credit cards should always be used instead of cash.
• B) The best approach to credit cards is never even to apply for one.
• C) Credit cards are an important part of a personal financial system, but they should be used with care and discipline to avoid their high financial costs.
• D) Credit cards are most useful when making large purchases (over $500), because they allow you to spread out the payments so they fit in your budget.

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Definitions:

Payroll Tax

Levies placed on employers and employees, often determined as a fraction of the payroll expenses employers incur for their staff.

Workers' Compensation Insurance

Insurance that provides medical benefits and wage replacement to employees injured in the course of employment.

Payroll Amounts

The total sum of money an employer is obligated to pay its employees for a set period or on a given date.

Federal Unemployment Tax Rate

The rate at which employers are taxed to contribute to the United States’ federal unemployment funding.