Which of the Following Methods of Calculating Finance Charges on Credit

question 51

Multiple Choice

Which of the following methods of calculating finance charges on credit cards is least favorable to the cardholder?

• A) Previous balance method
• B) Ending balance method
• C) Average daily balance method
• D) Adjusted balance method

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Definitions:

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A contract for the sale of goods where the purchase price is paid in installments and the ownership of the goods is transferred to the buyer only after all payments have been made.

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Registration

The act of officially recording information or data into a formal system or registry, often necessary for legal recognition or validity.

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