Multiple choice technology mainframe

What is Minimum Due Amount?

  1. It is the minimum amount that will be requested to pay every year.

  2. It is the minimum amount that will be requested to pay so that the customer will not go into delinquency

  3. It is the spend amount of the customer that needs to be paid every month.

  4. None of these
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B Correct answer
Explanation

The Minimum Due Amount is the lowest amount a credit cardholder must pay by the due date to keep the account active and avoid late fees and delinquency. Paying only this amount prevents delinquency but may still incur interest on the remaining balance. Other options refer to annual payments or full monthly spend.

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