Final answer:
False, a cash advance is a short-term loan against your credit card, typically meant to be paid back within a short period, and generally comes with high interest rates.
Step-by-step explanation:
A cash advance is not a long-term loan against your credit card; it is a short-term loan. Generally, when you take out a cash advance, the credit card company immediately makes funds available to you, which is then considered borrowed money that you are required to repay, typically by the end of the month. This is contrary to the nature of long-term loans, which are repaid over an extended period.
Credit cards represent a form of short-term financing where the money borrowed is expected to be paid back shortly. Usually, a cash advance comes with high interest rates, and it is intended to provide temporary financial relief in situations where immediate cash is necessary. It is essential to understand that although credit can assist in purchasing goods and services when needed, it also means going into debt. Responsibility with credit usage is crucial because high-interest debt can accumulate quickly, adversely affecting one's financial health and credit score.