Which of the Following Is Correct Regarding Credit Cards

question 162

Multiple Choice

Which of the following is correct regarding credit cards?

• A) They are a store of value.
• B) They are not a money substitute.
• C) They are a permanent medium of exchange.
• D) They are becoming more important but are still not a major factor in the purchase of consumer goods.
• E) They are often referred to as "plastic money."

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Definitions:

Shares of Stock

Units of ownership interest in a corporation or financial asset, giving shareholders a claim on part of the company's assets and earnings.

Issuing Stock

The process by which a company distributes shares to investors for the first time, typically to raise capital for expansion or other corporate activities.

Corporation's Resources

The assets, both tangible and intangible, that a corporation has available for use in the production of goods or the provision of services.

Cost Concept

An accounting principle that states that all goods and services purchased by a business should be recorded at their cost price.