Which of the following statements is true about the cash advances that the holder of a bank credit card can obtain from participating banks?
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B)Cash advances without any limits can be withdrawn from an ATM using credit cards.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 obtained on credit cards are secured by participating banks.
E)Cash advances are loans obtained from an 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 usually limited by the available credit limit in the borrower's account. This means that the borrower cannot withdraw more cash than what is available as credit limit on their credit card. Other statements are false or misleading. For example, cash advances start accruing interest immediately, there are usually limits on the amount that can be withdrawn from an ATM using credit cards, cash advances are not secured by participating banks, and they can be used for purchases in addition to cash withdrawals.

Which of the Following Statements Is True About the Cash