What Is a Disadvantage to Using Paycards as a Method

question 12

Multiple Choice

What is a disadvantage to using paycards as a method of transmitting employee compensation?

• A) Ease of paying traveling employees.
• B) Convenience of retrieving pay disbursements.
• C) Acceptance of paycards at many locations.
• D) Potential withdrawal and point-of-sale limitations.

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Definitions:

Compounding Effect

The compounding effect refers to the process where the value of an investment increases due to the earnings on both the initial principal and the accumulated earnings from preceding periods.

Future Value

The value of an investment at a specific date in the future, accounting for specified interest rates or returns.

Present Value

The contemporary value of a forthcoming amount of money or cash flow stream, determined by a certain rate of return.

Discount Rate

The rate at which regional Federal Reserve Banks lend to commercial banks and other financial institutions, charged for loans obtained from the Federal Reserve's lending facility.