A Credit Card Holder Who Pays Off His Balances in Full

question 5

Multiple Choice

A credit card holder who pays off his balances in full each month is known as

• A) An impulsive lender.
• B) A convenience user.
• C) A home equity holder.
• D) A borrower
• E) All of these are correct.

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Definitions:

Liquidity

A measure of how easily assets can be converted into cash without affecting their market price.

Profitability

An indicator of how well a company is able to produce profit through its business activities.

Liquidity

A measure of how easily assets can be converted into cash or cash equivalents without significantly altering their value, essential for meeting short-term obligations.

Asset Management

A methodical approach to the creation, operation, upkeep, and disposition of assets that ensures cost efficiency.