Problemas
Question 17 (1 point) A disadvantage of using credit as a source of liquidity is the a inconvenience of using credit. b potential cost of finance charges. c acceptability of credit by creditors. d poor records available after credit use.
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Ezequiel
professionell · Tutor durante 6 años
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Respuesta
The correct answer is b) potential cost of finance charges.Using credit as a source of liquidity can have several disadvantages, and one of the main drawbacks is the potential cost of finance charges. When you use credit, you are essentially borrowing money from a lender, and in return, you are required to pay interest or finance charges on the borrowed amount. These finance charges can add up over time, making it more expensive to use credit as a source of liquidity.The other options provided are not accurate disadvantages of using credit as a source of liquidity:a) The inconvenience of using credit is not a significant disadvantage, as credit cards and loans are widely available and can be easily accessed.c) The acceptability of credit by creditors is not a disadvantage, as creditors are the ones who provide credit.d) Poor records available after credit use is not a disadvantage of using credit, as credit providers typically maintain detailed records of credit transactions.Therefore, the correct answer is b) potential cost of finance charges.