Credit Has Its Advantages and Disadvantages

question 84

Multiple Choice

Credit has its advantages and disadvantages. Which of the following is false?

• A) Credit cards should be used with discipline.
• B) You should spend up to the limit on all your credit cards.
• C) Cash advances are available through a credit card.
• D) Bankruptcy is the worst-case scenario from poor credit management.

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Definitions:

Trading

The buying and selling of financial instruments like stocks, bonds, commodities, and derivatives within financial markets.

Coupon Bond

A bond that pays the holder periodic interest payments based on a pre-defined rate (the coupon rate) until maturity when the principle is also repaid.

Current Yield

The annual income (interest or dividends) from an investment, expressed as a percentage of the current price of the investment.

Trading

The act of buying, selling, or exchanging financial assets like stocks, bonds, or commodities in financial markets.