Question

multiple select question
select all that apply
credit cards can be a cheaper alternative to an installment loan if the need is short term (less than a month). this is because of the ______ period that is often allowed by credit card companies
□ term
□ float
□ grace

Explanation:

Credit card companies offer a grace period, typically 21-25 days, where no interest is charged on purchases if the full balance is paid by the due date. For short-term (under a month) borrowing, this allows the user to avoid interest entirely, making it cheaper than an installment loan which accrues interest immediately. "Term" refers to the length of a loan, and "float" relates to the time between a transaction and funds being deducted, which is not the key factor here.

Answer:

grace