Riya recently bought a new phone. She was taking a photo of her sister when she dropped the phone in the pool. The company that made the phone told her they wouldn’t replace it. Riya decides to call her credit card company to find out if they can help.
Use the passage to answer the question.
Which advantage of credit is Riya seeking to use?
A.
emergencies
B.
purchase power
C.
building a credit line
D.
protection of purchases
D. protection of purchases
What is a regular car payment an example of?
A.
fixed expense
B.
variable expense
C.
interest
D.
ownership investment
A. fixed expense
To determine which advantage of credit Riya is seeking to use, we need to analyze the situation provided in the passage. Riya recently bought a new phone and dropped it in the pool, and the company that made the phone refused to replace it. As a result, Riya decides to call her credit card company to find out if they can help.
In this case, the advantage of credit that Riya is seeking to use is the protection of purchases. This is because she is experiencing an issue with her purchase (dropping the phone and the company refusing to replace it), and she wants to inquire if her credit card company offers any protection or insurance for such situations.
Therefore, the answer is D. protection of purchases.