Multiple Choice
Which of the following best explains why an employer-sponsored retirement plan is considered convenient for employees?
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1. Introduction to Accounting
Types of Accounting
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Which of the following is an example of a non-bank credit option?
A
Savings account at a credit union
B
Certificate of deposit at a bank
C
Credit card issued by a retail store
D
Personal loan from a commercial bank
Verified step by step guidance1
Understand the concept of non-bank credit options: Non-bank credit options refer to financial products or services that provide credit but are not issued by traditional banking institutions like commercial banks or credit unions.
Analyze each option provided in the question: Savings account at a credit union and certificate of deposit at a bank are not credit options; they are savings instruments. Personal loans from a commercial bank are issued by a bank, so they are not non-bank credit options.
Focus on the credit card issued by a retail store: Retail store credit cards are examples of non-bank credit options because they are issued by retail stores rather than traditional banks.
Clarify why retail store credit cards qualify: These cards allow customers to borrow money or defer payments for purchases made at the store, functioning as a credit option outside the banking system.
Conclude the reasoning: Based on the analysis, the correct example of a non-bank credit option is the credit card issued by a retail store.
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