Question

Of the following, which statement or statements accurately reflect a way in which credit can be safer than cash?

1. If your credit card gets stolen, you can cancel it and get your money back.
II. It is harder to lose a single credit card than a large number of bills.
III. If a merchant does not honor the agreement, you can call the credit company and dispute the charges.
A.I and III
B.ll only
C.Ill only
d. 1, 11, and 111
Please select the best answer from the choices provided.

Answer 1

Answer: A) I and III

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Step-by-step explanation:

1. Statement I is true. If your card gets stolen, then you can cancel it and get your money back. That's true and it happens all the time. The credit card company would issue a new card with a new number. Law enforcement is very likely to track the old card to catch the thief.
2. Statement II is false. It's easier to lose a single small credit card than a large number of bills. Lost credit cards, not necessarily stolen ones, are also issued new replacements.
3. Statement III is true. If you buy an item online for instance, and the item never arrives, then you can dispute the claim and get your money back. This also applies to payment processors such as Paypal and similar companies.