any shift in interest rates can have positive or negative outcomes on annual percentage rate (apr). what…

any shift in interest rates can have positive or negative outcomes on annual percentage rate (apr). what happens to the apr on most credit cards when interest rates increase? choose 1 answer: a it increases b stays the same c it decreases d becomes zero

any shift in interest rates can have positive or negative outcomes on annual percentage rate (apr). what happens to the apr on most credit cards when interest rates increase? choose 1 answer: a it increases b stays the same c it decreases d becomes zero

Answer

Answer:

A. it increases

Explanation:

Step1: Understand APR and interest rates

APR is annual percentage rate for borrowing. It's tied to market - interest rates.

Step2: Analyze the relationship

When market interest rates rise, credit - card companies increase APR to maintain profit margins and account for higher cost of funds. So, when interest rates increase, the APR on most credit cards increases.