Which statements are true? a "periodic rate" breaks down the yearly cost into weekly periods. card issuers are not allowed to charge a fee when you use the card to obtain a cash advance a finance charge is a cost for the convenience of borrowing money?

Question

Business

Justine Beck

12 September, 21:28

Which statements are true? a "periodic rate" breaks down the yearly cost into weekly periods. card issuers are not allowed to charge a fee when you use the card to obtain a cash advance a finance charge is a cost for the convenience of borrowing money?

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Answers (1)

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Danna Orr · Answer 1

Option A and C are correct.

Explanation:

The reason is that the periodic rate can be used to calculate the weekly, per day or monthly rates for making of a meaningful decisions so the statement is correct.

Furthermore, the card issuer are allowed to deduct the service cost because they are offering us the facility of extracting of cash from their cash extraction machines. So the statement is not correct.

The finance charge is the cost of borrowing money from the lender which we pay them in the form of interest and hence is the cost for the convenience of borrowing money. So the statement is correct.