Of the Three Methods by Which Finance Charges May Be

question 68

Short Answer

Of the three methods by which finance charges may be calculated on outstanding credit card balances, the least favorable to the cardholder is the ________ balance method.

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Definitions:

Certificate of Deposit

A savings certificate with a fixed maturity date, specified fixed interest rate, and can be issued in any denomination aside from minimum investment requirements.

Financial Intermediary

An institution that facilitates the channeling of funds between lenders and borrowers by intermediating between them.

Direct Transfer

A process where assets or funds are moved from one party directly to another without intermediaries.

Capital Market Security

Financial instruments like stocks and bonds that are traded in capital markets involving long-term investments.