Which of the Following Is Not an Advantage of Accepting

question 77

Multiple Choice

Which of the following is not an advantage of accepting credit cards from retail customers?

• A)The acceptance of credit cards tends to increase sales.
• B)There are fees charged for the privilege of accepting credit cards.
• C)The credit card company performs credit worthiness assessments.
• D)The credit card company assumes the cost of slow collections and write-offs.

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Definitions:

M1

A category of the money supply that includes physical currency and coin, demand deposits, traveler's checks, and other checkable deposits.

Savings Deposits

accounts held at financial institutions that allow deposits and withdrawals and are subject to modest interest rates.

Commodity Money

Money that has intrinsic value and can be used for purposes other than as a medium of exchange, such as gold or silver.

Legal Tender

The government-mandated currency that must be accepted as payment for debts.