Skip to content

NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Debt Management and Loans

Which of the following is generally considered the most expensive form of consumer credit for a borrower who does not pay the full statement balance by the due date?

A credit card revolving balance is generally the most expensive. It is unsecured credit and, when the full amount is not paid by the due date, finance charges of several percent per month apply, far above rates on home, education or gold loans.

  1. AHome loan against residential property
  2. BEducation loan with moratorium
  3. CCredit card revolving balanceCorrect
  4. DGold loan

Explanation

Unsecured credit card balances that are rolled over attract very high monthly finance charges, commonly 3-4% a month, plus fees. Home, education and gold loans are secured or concessional and carry much lower rates.

Did you get it right without looking?

One question tells you little. A timed set on Debt Management and Loans shows your real accuracy, how long you take and where you lose marks.

Practise Debt Management and LoansFree diagnostic mock

More Debt Management and Loans questions