Question

6. Of the following choices below select the advantages a credit card has over cash in terms of safety?

a. Safety (like protection from fraud).

b. Improvement in credit scores when making large purchases and not paying it back on time (over 50% balance).

c. Warranty protection

d. Credit score (will help increase your credit score if paid on time)

e. Incentives (can get miles, cash back, and other rewards).


A

B

C

D

E

Answer 1

a. Safety (like protection from fraud) is an advantage that a credit card has over cash in terms of safety.

Fraud protection is a feature that is often provided by credit card companies to protect their customers from unauthorized purchases or transactions. If a credit card is lost or stolen, the cardholder can report it to the issuer, and the issuer will block the card and investigate any fraudulent activity. This provides a level of protection that cash cannot offer.

Cash can be lost or stolen, and once it is gone, it is difficult or impossible to recover. Credit cards, on the other hand, can be canceled and replaced if they are lost or stolen, and the cardholder is not liable for any fraudulent charges made on the card. This makes credit cards a safer option than carrying large amounts of cash.

The other options listed, such as improvement in credit scores, warranty protection, credit score improvement, and incentives, do not directly relate to the safety of using a credit card over cash.