Which of the Following Practices by a Credit Card Company

question 91

Multiple Choice

Which of the following practices by a credit card company results in lower interest charges to the cardholder?

• A) The card company states interest as a monthly percentage rather than an annual percentage.
• B) The card company allows a grace period before interest is accrued.
• C) The card company allows cardholders to skip payments on their cards.
• D) The card company calculates finance charges from the date of purchase to the date the amount is paid.

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Definitions:

Court of Appeals

A court that hears appeals from lower court decisions, reviewing and potentially reversing or modifying these decisions.

Court of Federal Claims

The Court of Federal Claims is a federal court that handles cases involving monetary claims against the U.S. government.

U.S. District Court

The general trial courts of the United States federal court system where civil and criminal cases are filed and heard.

U.S. Tax Court

A federal court that provides taxpayers a venue to dispute tax assessments made by the Internal Revenue Service.