Which of the following is not true of credit cards? athey offer the highest level of fraud protection. bthey are the best payment type to use when trying to stick to a budget. cyou can be charged a fee if you are late making a monthly payment. dsome offer rewards, like cash back or airline miles.

A and B are NOT true of credit cards

Credit card is a card that have a function to borrow money against a line of credit. When you want to buy something, a sales clerk uses your credit card to charge the money needed to their account, so the you will pay later.

Credit cards can be charged a fee if you are late making a monthly payment. For example if you're late to do credit card payment, the next billing statement will include a fee for the late/missed payments. Late fees can be as high as $39, but it depends on your credit card's late fee policy and whether or not it's your first time being late in the past six months.

Credit cards also provide some offer rewards, like cash back or airline miles. The differences between the airline miles and cash back is, the airline credit cards, on average, provide much better short-term value, while cash back cards are better for long-term.

. They offer the highest level of fraud protection and B. They are the best payment type to use when trying to stick to a budget are

A and B are NOT true of credit cards. Credit cards IS much safer method of payment in terms of fraud. Also credit cards are not the best payment to use when trying to do stick on a budget

Grade:  9

Subject:  business

Chapter:  credit cards

Keywords: credit cards

Options A and B are not true statements related to the credit card.

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.

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.  

Thus, option A and B are not true statements of the credit card.

Learn more:

1.Minimum payment of credit card

2.Charging fee in case of credit card

3.Consequences of non-payment of monthly credit card payment

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.