A credit card can be made temporarily inactive.

Question

BlackTom AI · Accepted Answer

Consider the statement about credit card functionality. 
Option 1: True. In many banking and card issuer systems, there is a feature to temporarily deactivate or freeze a credit card. This can be used to prevent transactions if the card is lost, stolen, or not needed for a period, without permanently closing the account. The freeze typically stops both online and in-person purchases and sometimes prevents cash advances, depending on the issuer's controls.
Option 2: False. If the statement were false, it would imply that a credit card cannot be made inactive temporarily, which contradicts common card security features offered by banks. Most issuers provide a way to reactivate the card later, so claiming there is no temporary inactive state would be inaccurate in many systems.
Exploring the practical implications: the ability to make a card temporarily inactive enhances security and provides flexibility for cardholders who want to limit exposure while keeping the account open. If the feature did not exist, a cardholder would need to go through more involved steps to deactivate the card permanently or to monitor for unauthorized activity, which is less user-friendly.
In summary, the option described aligns with standard security practices offered by many financial institutions, where a temporary inactive or frozen state is a supported option, whereas denying this capability would ignore common features designed for risk reduction. Therefore, the statement aligns with typical card management options offered by issuers.

SG30018E1 - Sage 300 2018 General Ledger Module 3 Quiz

A credit card can be made temporarily inactive.

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