1. The correct option is (C).
2. The correct option is (A).
3. The correct option is (B).
4. The correct option is (C).
Further Explanation:
1.
The correct option is (C). In case of late credit card payment, the banker imposes the default interest rate on the defaulter. The default interest rate is the highest interest rate imposed on the borrower in case of any default and late payment. The defaulter needs to pay the fees on the late payment.
2.
The correct option is (A). Zach is using the credit card of his parents. Therefore, any irresponsive behavior would affect the credit of his parents. It will not affect Zach’s credit because he is not using his own credit card. Therefore, only the credit of their parents is affected in the case of any carelessness.
3.
The correct option is (B). The interest and price of the bond have an inverse relationship because the bond is a loan instrument, and the increase in the cost of the loan will be equalized by the decrease in the value of the bond. Thus, the value of the bond will decrease in the case of an increase in the interest rate.
4.
The correct option is (C). The interest is calculated as follows:
\begin{aligned}\text{Monthly Interest}&=\text{Principle}\times{\text{Rate}}\times\frac{1}{12}\\&=\$500\times16\%\times\frac{1}{12}\\&=\$6.67\end{aligned}
Learn More:
1. Learn more about the form of money
<u>brainly.com/question/1354121
</u>
2. Learn more about the implicit cost
<u>brainly.com/question/2496755
</u>
3. Learn more about economic freedom
<u>brainly.com/question/1354197
</u>
<u>
</u>
Answer Details:
Grade: Middle school
Chapter: Credit rating
Subject: Business studies
Keywords: consequence, credit, card, payments, late,
Fees, paying, introductory, interest, rate,
higher, Fees, paying, default, interest, rate,
authorized, user, card, responsible, way, credit, damaged
Zach's, credit, damaged, interest, rates rise, happen, prices, bonds,