A disadvantage of using credit as a source of liquidity is the
A) inconvenience of using credit.
B) potential cost of finance charges.
C) acceptability of credit by creditors.
D) poor records available after credit use.

Question

Quizplus · Accepted Answer

The potential cost of finance charges is a disadvantage of using credit as a source of liquidity because it can lead to additional expenses due to interest rates and other fees associated with borrowing.

A Disadvantage of Using Credit as a Source of Liquidity