Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN: 9780357033609
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 6, Problem 4FPE
Summary Introduction
To determine: The Person S should purchase a debit card or credit by laying down their benefits and drawbacks.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
If you were a wise credit card user, under which of the following conditions would you consider using a credit card to finance an expensive purchase?
a. If I haven't reached my credit limit and I really want to item
b.If I believe my money situation will be better (for example, a better-paying job) in the future than it is now.
c.If I have the money to pay for the item in my bank account and plan to immediately pay the balance in full.
d. If my card has good rewards on it.
Suppose you go to your local bank, intending to buya certificate of deposit with your savings. Explain whyyou would prefer this to offering a loan, at an interestrate that is higher than the rate the bank pays oncertificates of deposit (but lower than the rate the bankcharges for car loans), to the next individual who entersthe bank and applies for a car loan
Imagine you're trying to select a new credit card. Identify 4 attributes of a credit card you would consider in making your selection. make a brief description of each attribute and how you would use it to select a credit card. Where would you file a complaint if the issuer of the credit card you select later treats you unfairly?
Chapter 6 Solutions
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
Knowledge Booster
Similar questions
- Which statement about credit cards is true? a) A credit card company charges high interest rates on balances not paid off each month. b) A credit card company allows you to use money from your savings account. c) A credit card company allows you to payback money when you can d) A credit card takes money directly out of your checking accountarrow_forwardWhich of the following is not a reason for the Jones Hardware Store to accept credit cards from customers? Group of answer choices A)Jones can receive its money faster than if it directly extended credit to the customer by an account receivable. b)The credit card company offers a discount to Jones so that Jones will have more money available for operations. C)Jones will not have to be concerned with nonsufficient funds checks from customers. d)Jones will not have to have extra office workers to make phone calls to customers requesting collections on accounts. E)All these are reasons to accept credit cards.arrow_forwardAbdullah has applied for a loan to start his business. Bank has checked the profile of Abdullah. Bank is ready to give him a loan but they are asking for a collateral. Which type of loan, bank is advancing to Abdullah? a. Cash credit b. Secured loan c. Personal loan d. Unsecured loanarrow_forward
- You have two credit cards with the following balances: Card A Credit limit: $20,000 Current Balance: $2,000 Card B Credit limit $25,000 Current Balance $ 14,000 Assuming that both cards have been held by you for the same amount of time and you make regular payments on time. Which card is harming your credit more than the other one? Show your work and explain.arrow_forwardYou decide to start a business selling covers for smart phones in a mall kiosk. To buy inventory, you need to borrow some funds. Why are you more likely to take out a bank loan than to issue bonds? Do you have other options?arrow_forwardChoosing a new bank. Youre getting married and believe your present bank is not a good fit. Discuss how you should go about choosing a new bank and opening an account. Consider the factors that are important to you in selecting a banksuch as the type and ownership of new accounts and bank fees and charges.arrow_forward
- 4 Ken is a customer at Orange Grove Bank and frequently banks online. One day he receives an email with his banks logo on the top. The email states: You have been preapproved for a premium credit card, with an introductory rate of zero percent APR. The email then asks Ken to click on a link provided in the email to activate his card. Ken clicks on the link and is directed to a website where he is asked to provide personal financial information and his Social Security number. What law, or rule, applies to this situation?arrow_forwardYour friend, Gerald, has asked you to help him with his bank statement. He is sure there are some errors and some things just do not make sense to him. Study the bank statement shown below and answer the questions that follow. • The fee for deposits is R2,00 plus R1,00 for every R100,00. • Stop order payments cost R2,50 regardless of the amount. • Card purchases cost R1,00 regardless of the amount • Gerald's biggest expense is his accommodation, he pays rent to S. Yusuf. Questions 3.4 Use the information regarding the banking fee to find a mistake in the fee column. Identify the mistake and correct it. 3.5 How much rent does Gerald pay each month? 3.6 The tax of R2 440 has already been deducted from Gerald’s salary. What tax rate (percentage of his total salary) is he paying towards tax? Round off your answer to two decimal values.arrow_forwardA friend of yours is graduating college next month. He has had a credit card and student loans for the past few years, but he’s never bothered to check his credit report. 1)Why is it vital that your friend reviews his credit report? How soon would you recommend he does so and why? 2) Which sections of information in his credit report should he pay particular attention to given his situation?arrow_forward
- Based on the information above should Billy open a checking account or a savings account? Explain your choice by citing at least 2 benefits of the account type you chose and why those benefits are a good fit for Billy's current situtation.arrow_forwardWhich of the following statements are true? Select the two correct answers. Responses A) credit cards are the same as debit cards B) store credit cards co-branded with visa, Mastercard, discover can be used anywhere that those cards are accepted C) bank issue credit cards and debit cards D) a credit card from a bank is linked to the user’s checking account E) you can never use a store credit card anywhere elsearrow_forwardYour friend Binna has a money market mutual fund account, automatic deposit of her paycheck into an interest-bearing checking account at the company credit union, and a CD from the local branch of a bank that advertises "coast-to-coast" banking. What is the benefit of "mixing and matching" financial institutions and their services?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Pfin (with Mindtap, 1 Term Printed Access Card) (...FinanceISBN:9780357033609Author:Randall Billingsley, Lawrence J. Gitman, Michael D. JoehnkPublisher:Cengage Learning
PFIN (with PFIN Online, 1 term (6 months) Printed...FinanceISBN:9781337117005Author:Randall Billingsley, Lawrence J. Gitman, Michael D. JoehnkPublisher:Cengage Learning
Pfin (with Mindtap, 1 Term Printed Access Card) (...
Finance
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Cengage Learning
PFIN (with PFIN Online, 1 term (6 months) Printed...
Finance
ISBN:9781337117005
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Cengage Learning