Which Method of Figuring Your Finance Charge on Your Credit

question 61

Multiple Choice

Which method of figuring your finance charge on your credit card is calculated by taking the payments or credits received during the current billing period and subtracting them from the balance at the end of the previous billing period?

• A)Average daily balance method
• B)Minimum finance charge
• C)Credit limit
• D)Adjusted balance method

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Definitions:

Indirect Channels

These are pathways of distribution wherein goods or services move from the manufacturer to the consumer through intermediary agents or merchants.

Consumer Products

Goods produced for personal use by the general public.

Channel Functions

The roles and activities performed by intermediaries within a distribution channel, such as product information dissemination, negotiation, and order fulfillment.

Grading

The process of evaluating the quality or size of products like agricultural commodities, based on a set of standards.