Answer:
1. What are credit cards? Why do people use them?
When used responsibly, credit cards allow you to earn cash or other rewards for the things you buy every day. Plus, they can be valuable budgeting tools that let you easily see where your money goes each month and make any necessary adjustments. That's why some people use their credit cards for all transactions.
2. is interest? How does interest affect credit card purchases?
Credit card interest is charged on a daily basis when you carry a balance from month to month, and it affects both your existing balance and any new purchases that post to your account. The interest you're charged one day also becomes part of the balance accruing interest the next.
3. What are the benefits of using a credit card? What are the drawbacks of using a credit card?
Credit cards offer benefits such as cash back rewards and fraud protection. But if mismanaged, credit cards can lead to debt, interest charges and damage to your credit.
4. In the case files section, four people pay a different price for the same digital music player? Why do the prices they paid differ? Explain the factors that affected each person’s ultimate cost for the music play.
This difference in the various costs can be explained by a few factors. One of those is the location where the item was bought. For example, if the buyers leave in different countries, the costs involved will hardly be the same. It's usually cheaper where the product is made because there's no or little logistics costs involved. Still in relation to the location, the fiscal policy on foreign products can significantly affect the price of the item. Another consideration is the acquisition cost of and margin on the item by the retailer. These can significantly affect the ultimate costs for the user.
5. Which of the individuals made the best use of their credit card? Which made the worst? Why?
I don´t know this answer.
6. What should you look for when choosing a credit card?
When you're choosing a credit card you should be looking for Annual Percentage Rate (APR), minimum repayment, annual fee, charges, introductory interest rates, loyalty points or rewards and cash back.
7. What is a “grace period”? How can it help you manage a credit card wisely?
A grace period is a period after one fails to pay his bills during which the bank does not bother you to pay it as long as the grace period lasts. It can be useful because you can plan on when you will pay your credit card bills based on how big your grace period is.
8. What are three strategies that you can use to use credit cards wisely?
Pay the balance in full and always on time.
Pay more than the minimum amount required.
Be mindful of your credit limit.
Explanation:
I didn't know question 5
