In the Context of Credit Card Practices, a Mandate of the Credit

question 33

Multiple Choice

In the context of credit card practices, a mandate of the Credit Card Accountability, Responsibility and Disclosure Act of 2009 is that:

• A) a credit card holder must not hold a joint bank account with his or her spouse.
• B) anyone under the age of 21 must have an adult cosign the credit card application.
• C) there should be no caps on the types of fees that credit card issuers can charge.
• D) issuers must give a 10-day notice before making significant changes to credit agreements.

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Definitions:

Long-term Liabilities

Financial obligations of a business that are due more than one year in the future, such as bonds payable or long-term loans.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

Current Liabilities

Financial obligations a company is required to pay within one year, such as accounts payable and short-term loans.

Accounts Payable

Liabilities owed by a business to its suppliers or vendors for goods and services purchased on credit.