Which of the Following Statements Is True About Bank Credit

question 112

Multiple Choice

Which of the following statements is true about bank credit cards like VISA and MasterCard?

• A) They are an excellent source of emergency funds for unexpected expenses.
• B) Their interest rate is generally lower than a loan at a credit union.
• C) Like home equity loans, the interest paid on credit cards is tax deductible.
• D) Their interest rate is lower than home equity lines of credit.

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Definitions:

Net Income

A company's overall earnings post-deduction of every expense and tax from its total income.

Net Income

The amount of total revenues minus total expenses, representing the profit a company has generated over a specific period.

Bonus

Additional compensation given to employees or executives beyond their regular salary, often as a reward for achieving certain performance targets.