Debit Cards Can Be Expensive to Use Because

question 6

Multiple Choice

Debit cards can be expensive to use because:

• A)they can cause you to overdraft your checking account and consequently incur an overdraft fee.
• B)the finance charge on debit cards is higher than on credit cards.
• C)the annual fee for these cards is higher than for credit cards.
• D)merchants charge a fee when you use them.

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Definitions:

Oligopolists

Companies or entities that dominate a particular market, where a few businesses hold significant market share, potentially affecting prices and competition.

Cartel Members

Companies or countries that agree to control production and prices, often to limit competition and maximize collective profits.

Collusive Agreements

Secret or illegal cooperation or conspiracy, especially between competing entities, to cheat or deceive others.

Monopolist

A market participant, individual, or company that holds exclusive control over the supply of a particular good or service, potentially manipulating prices.