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:

Contractual Agreement

A legally binding contract that outlines the terms and conditions between parties.

Bond Financing

Raising capital for a business or governmental entity through the issuance of bonds, which are debt securities that must be repaid with interest.

Owner Control

The level of power and authority held by the owner(s) of a business in making significant decisions about its operations.

Lessee

A person or entity that rents or leases property from another, known as the lessor, under the terms of a lease agreement.