Which of the Following Is the Fundamental Function of Credit

question 100

Multiple Choice

Which of the following is the fundamental function of credit cards?

• A)Credit cards are used for deferring payments.
• B)Credit cards are used as store of value.
• C)Credit cards are used for increasing the money supply.
• D)Credit cards are used as investment assets.

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Definitions:

Bond Discount

The amount by which the market price of a bond is lower than its principal amount or face value.

Indirect Method

A method used in cash flow statement preparation that adjusts net income for items that affected reported net income but didn't affect cash.

Operating Activities

Activities directly related to the production, sale, and delivery of a company's goods or services, reflecting its core business operations.

Indirect Method

A way of calculating cash flows from operating activities in the cash flow statement by adjusting net income for changes in non-cash accounts.