Which of the following statements about the cash advances that the holder of a bank credit card can obtain from participating banks is true?
A) Cash advances are loans on which interest begins to accrue only when the borrower uses them to make purchases.
B) Cash advances without any limits can be withdrawn from an automated teller machine (ATM) using credit cards.
C) Cash advances obtained from the teller window at a bank are limited by the unused credit in the borrower's account.
D) Cash advances can be obtained only during the hours the bank is open.
E) Cash advances are loans obtained from an automated teller machine (ATM) using credit cards that do not allow merchandise purchases.

Question

Quizplus · Accepted Answer

Cash advances obtained from the teller window at a bank are limited by the unused credit in the borrower's account. This means that the amount of cash advance that can be obtained from a participating bank is limited by the credit available on the borrower's credit card account. Option A is incorrect because interest starts accruing immediately after the cash advance is obtained. Option B is incorrect because there are limits on the amount of cash that can be withdrawn from an ATM using a credit card. Option D is incorrect because cash advances can also be obtained from ATMs, not just during bank operating hours. Option E is incorrect because cash advances obtained from ATMs can also be used for merchandise purchases.

Which of the Following Statements About the Cash Advances That