Credit Cards Are

question 22

Multiple Choice

Credit cards are

• A)a good source of short term funds to be used in a period of negative cash flow.
• B)used to spend excessively by some because it avoids using up available cash.
• C)a great way to discipline yourself to delay gratification to the future.
• D)an interest free source of credit as long as the balanced is paid of every other month.

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Definitions:

Exponentially Distributed

Pertaining to a statistical distribution characterized by a constant rate of decay or growth over time.

Random Variable

A variable whose outcomes are determined by the occurrences of a random event.

Exponential Random Variable

A type of random variable that describes the time between events in a Poisson process, representing occurrences that happen at a constant rate.

Exponentially Distributed

Describes the time between events in a Poisson point process, i.e., a process in which events occur continuously and independently at a constant average rate.