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:

Subscriptions Receivable-Common Stock

An account representing amounts due from subscribers who have agreed to buy shares of common stock, not yet paid for.

Paid-In Capital in Excess

Funds received from investors above the par value of the shares issued, also known as additional paid-in capital.

Paid in Capital in Excess

The amount received from shareholders in excess of the par or stated value of the shares, also known as additional paid-in capital or share premium.

Common Stock

A type of equity security that represents ownership in a corporation, with holders potentially entitled to dividends and voting rights.