A Debit Card Is Better Than a Credit Card Because

question 162

True/False

A debit card is better than a credit card because it allows the purchaser to float a short-term loan, until the credit card company sends the bills at the end of the month.

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Definitions:

Spot Price

The current market price at which an asset, such as securities, commodities, or currencies, can be bought or sold for immediate delivery.

Basis Risk

The possibility that a futures contract's price won't align with the movements of the underlying asset's price, resulting in potential financial losses during hedging activities.

Clearinghouse

An intermediary between buyers and sellers of financial instruments that ensures the orderly and efficient settlement of transactions.