Question

Of the following, which statement or statements accurately reflect a way in which credit can be safer than cash?

I. If your credit card gets stolen, you can cancel it and get your money back.
II. It is harder to lose a single credit card than a large number of bills.
III. If a merchant does not honor the agreement, you can call the credit company and dispute the charges.
a.
I and III
b.
II only
c.
III only
d.
I, II, and III

Answer 1

d. I, II, and III

All three are valid ways credit can be safer than cash:
- I: If a card is stolen you can cancel it and issuers generally protect you from unauthorized charges (you’re not stuck losing the money like you would with cash).
- II: Carrying one card is easier to keep track of than many bills, so it’s less likely to be misplaced or spread around and lost.
- III: Credit cards give you dispute/chargeback rights if a merchant won’t honor an agreement or charges you incorrectly.