Under the Credit Card Accountability, Responsibility, and Disclosure Act

question 29

Multiple Choice

Under the Credit Card Accountability, Responsibility, and Disclosure Act:

• A)a customer must be more than ninety days overdue on payment before the credit card company may impose a penalty rate increase on an existing debt.
• B)if a credit card company lawfully increases its interest rate on a customer because of overdue payments, the rate must be restored to the prior rate if the customer makes at least the minimum payment on time for the next six months.
• C)credit card companies must mail account statements 24 days prior to the payment due date.
• D)if the credit card company receives payment after 3 p.m., the payment may be credited the following business day.

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Definitions:

Efficiency

The extent to which resources are used optimally to achieve the desired output, often maximizing productivity while minimizing waste.

Output Market

A marketplace in which finished goods and services are traded, involving businesses selling to consumers or other businesses.

Marginal Rate

The rate of change in a quantity or cost in response to a one-unit change in another variable.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs.