Which of the Following Is a Disadvantage of Using Debits

question 74

Multiple Choice

Which of the following is a disadvantage of using debits cards over credit cards?

• A)You will not have a good record of your transactions.
• B)They charge higher interest rates than credit cards.
• C)You cannot tell if your bank account will become overdrawn.
• D)The fees charged to the cardholder can become significant.

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Definitions:

2 ½ Years

A time period of two and a half years.

Compounded Annually

The process of adding interest to the principal sum of a loan or deposit once per year, resulting in an increase in the amount of interest earned over time.

Discount Rate

The interest rate used to determine the present value of future cash flows.

Promissory Notes

Written promises to pay a specified sum of money to a specified person at a specified time.