Which of the Following Is a Disadvantage of Using Debits

question 43

Multiple Choice

Which of the following is a disadvantage of using debits cards over credit cards?

• A)You will not have a good record of your transactions.
• B)The higher interest rates than for credit cards.
• C)You cannot tell if your bank account will become overdrawn.
• D)The fees charged to the cardholder can become significant.

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Definitions:

Subordination Agreements

Legal documents that alter the priority of financial claims, making one party's claim rank behind another's in the event of a bankruptcy or liquidation.

Pro Rata

A Latin term that means "in proportion," often used to describe a method of allocating amounts or shares among participants according to their entitlement or contribution.

Chapter 11

A provision under the U.S. Bankruptcy Code that allows businesses to reorganize and restructure their debts while continuing operations.

Plan of Reorganization

A detailed proposal for restructuring a company's finances and operations, typically during bankruptcy proceedings.