Question

1. what does it mean if a credit card has a cash - back reward program?

a. it refunds a percentage of purchases
b. it reduces your cash balance
c. it requires cash payments only
d. it allows you to borrow cash

Explanation:

A cash - back reward program on a credit card means that when a cardholder makes purchases, a certain percentage of the amount spent is refunded to them. Option b is incorrect as it would be counter - intuitive for a reward program to reduce cash balance. Option c is wrong because credit cards are for credit (not just cash) payments. Option d describes a cash - advance feature, not a cash - back reward.

Answer:

A. It refunds a percentage of purchases