Options A and B are not true statements related to the credit card.
<u>Credit card does not offer highest level of fraud protection and it is not the best payment type when a person is trying to stock to a budget.
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Further Explanation:
Credit card:
Generally, Credit card is issued by financial institutes such as banks. Credit card refers to a plastic card which allows the cardholders to borrow the funds from the respective bank and spend the funds as per their requirements.
A credit card can be used for the purchase of goods and services. Generally, a credit card has a specific limit. It is known as a line of credit (LOC). The cardholder can withdraw or use the funds up to the LOC. The cardholder has to pay the amount which is borrowed along with interest on the borrowed funds after a specific period of time, which is defined and stated at the time of issuing the credit card.
A.
Credit cards offer the highest level of fraud protection:
The credit card does not provide the highest level of fraud protection. If the card cards are misplaced, the person can decode the credit card account and transfer the funds from one account to another account. The card can be used for the unauthorized purchase of goods and services.
B.
Credit cards are the best payment type when trying to stick to a budget:
Credit card is the borrowed funds. A person should spend from his earnings and as per their level of income. The level of income of a person defines their level of spending and saving. So credit card is not the best payment type when a person is trying to stick to a budget because the person is using the borrowed funds instead of earned funds. The interest charges on the borrowed funds also make it inconvenient as the person has to account for the interest charges.
C.
A person can be charged a fee if you are making a late monthly payment:
When the cardholders do not pay their credit card balance in specified time duration, the credit card company charges a late fee as a penalty.
D.
Some credit cards offer rewards, like cashback on airlines:
Credit card companies provide cashback offers or coupons to promote the use of the credit card.
<u>Thus, option A and B are not true statements of the credit card.
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3. Consequences of non-payment of monthly credit card payment
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Answer details:
Grade: Senior School
Subject: Business Studies
Chapter: Money and Banking
Keywords: Credit card, Charges, Credit card charges, Credit card company, Bank, Financial institute, Late fee, Payment Offer rewards, Cash back, Airlines miles, the highest level of fraud protection, budget, making late payment, not true.