Question

5. Choose the fragment which best completes the following sentence. Finance charges on a credit card Include (2 points)

Answer 1

Finance charges on a credit card Include "all of the above".

Option: D

Explanation:

Practically, a finance charge is any expense shown in the borrowing money costs, such as accrued interest and loan fees, including transaction fees. Finance charges are usually synonymous with "interest charges" even though they may contain late fees or other costs in some situations.

With credit cards, the interest that has accrued over the amount one owe throughout that particular billing cycle is an individual's finance fee. For every day of the month, the regular balance approach sums up an individual's financing fee. One need to know the precise credit card balance every day of the billing cycle to do that estimate correctly.