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QuizMultiple Choice

Comparing Purchasing Options — Quiz

Question 1 • Financial Algebra/Mathematics

Which statement reflects an advantage of using cash to buy an expensive item?

Answer
A
simplifies financial planning by eliminating debt
B
improves credit utilization ratios
C
provides a line of credit for emergencies
D
facilitates the return and warranty claims

Explanation

Paying cash means you do not borrow money, so you avoid taking on debt or making loan payments. That can make financial planning simpler. Cash does not improve credit utilization or provide a credit line, and return or warranty policies generally depend on the seller and product rather than whether you paid cash.

AI-written and checked against the verified answer.

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