INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-One condition of a secured credit card is that the holder must [pay a higher rate of interest | deposit an amount equal to the credit line in a savings account].
A)for the first item
B)for the second item
C)if neither item will correctly complete the statement.

Question

Quizplus · Accepted Answer

A secured credit card requires the holder to make a cash deposit equal to the credit line as collateral. This deposit is typically held in a savings account and can be used to pay off the card balance if the holder defaults. Therefore, depositing an amount equal to the credit line in a savings account is a condition of a secured credit card. While secured credit cards may have higher interest rates than unsecured credit cards, this is not always the case and is not a universal condition.

INSTRUCTIONS: Choose the Word or Phrase in [ ] Which