Benedict Applies for a Credit Card with a Credit Limit

question 109

Multiple Choice

Benedict applies for a credit card with a credit limit of $30,000. However, the issuing bank rejects his application because of his low credit score. While rejecting his application, the bank provides him with a free copy of his credit score. In this scenario, the bank is following the mandate of the _____.

• A) Federal Credit Union Act
• B) Dodd-Frank Act
• C) Glass-Steagall Act
• D) Credit Card Accountability, Responsibility and Disclosure Act

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Definitions:

Inventory

The total amount of goods held by a company for the purpose of resale or production.

Adjusting Journal Entry

An accounting record made to amend the preliminary financial statements towards the accrual basis of accounting, ensuring all revenues and expenses are recorded in the correct period.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life.

Assets

Economic resources controlled or owned by a business, which are expected to produce benefits or value in the future.