4. Cash advances on bank credit cards Another use of bank credit cards, in addition to purchasing goods and services, is to obtain a cash advance from participating banks. A cash advance is a loan and immediately puts cash in one's pocket-either by using the card at a participating bank or by using the convenience checks received from the card issuer when obtaining the card. Obtaining Cash in a Hurry Frances is parked outside her bank and needs cash today. Her standard checking account balance is sufficient to provide the cash, and she plans to deposit the paycheck she'll receive in a few days to her checking account. Frances also has a credit card whose terms allow her to obtain a cash advance. What would be the wisest way for Frances to get the cash she needs today? Withdraw the cash from her checking account Take a cash advance on her credit card Whichever way is quicker Why is this the wisest way to get the cash she needs? There is no interest charged when she takes her own money out of her checking account, but she would be charged interest beginning immediately if she took a cash advance. O There is interest charged on a cash withdrawal from her checking account, but if she took a cash advance, as long as her next credit card payment pays her entire balance due, she won't be charged interest for the cash advance. O Either way; she won't be charged interest, so it doesn't matter. Many bank credit card issuers charge a transaction fee for non-ATM cash advances. Frances has a bank credit card. If she takes a non-ATM cash advance, the bank will charge her 2% of the amount of the advance, or a flat fee of $5, whichever is more. Frances needs to obtain a non-ATM cash