Cash Advance. What is a cash advance? How are they commonly obtained? Discuss interest rates and grace periods with regard to cash advances.
A cash advance is: (Select the best answer below.)
A. obtained when goods or services are returned to the merchant. B. when the cardholder receives cash rather than goods or services. C. an automatic increase in the length of the grace period. D. a reduction in the APR.
Cash advances are commonly obtained:
(Select the best answer below.) A. at the verbal request of the cardholder. B. in your monthly statement. C. by writing a check provided by the credit card company or from ATMs. D. annually, based on your credit limit.
With cash advances, the interest rate is usually:
(Select the best answer below.) A. lower, there is an extended grace period, and usually there is a fixed transaction fee. B. higher, there is an extended grace period, and usually there is a fixed transaction fee. C. lower, there is no grace period, and there may be a transaction fee if you have an outstanding balance on the card. D. higher, there is no grace period, and there may be a transaction fee of 1 or 2% of the advance.