You Are Considering Applying for One of Two Credit Cards

question 36

Multiple Choice

You are considering applying for one of two credit cards. Credit card "A" has an annual fee of $30 and charges interest of 10%. Credit card "B" has no annual fee, but charges an interest rate of 15%. If you carry an average balance of $500 on your credit card, the lowest total annual expenses you could have with one of these two credit cards would be

• A) $50.
• B) $80.
• C) $75.
• D) $90.

Understand the significance of government spending and taxation changes on economic activity.

Recognize the role of automatic stabilizers in mitigating the effects of economic cycles.

Understand the influence of cultural differences on communication.

Recognize the various flows of communication within organizations.

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Definitions:

Dishonor

In financial contexts, it refers to the refusal or inability to pay a bill of exchange, promissory note, or other negotiable instrument when due.

Warranty Liability

Liability that is attributed when the transfer of an instrument breaches a warranty associated with an instrument.

Transfer

The act of moving or conveying property or rights from one party to another.

Primary Liability

The obligation falls directly on the individual or entity primarily responsible for an obligation, especially in financial transactions.