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QuizMultiple Choice

Making Spending Decisions — Quiz

Question 1 • Personal Finance

Consumers usually save the most money on major purchases when they

Answer
A
agree to an installment plan.
B
agree to rent to own.
C
take out a low-interest loan.
D
save up to pay with cash.

Explanation

Paying with cash after saving avoids interest charges, loan fees, and the extra costs that can come with installment or rent-to-own plans. Those costs increase the total amount paid for a major purchase, so saving up to pay with cash usually saves the most money.

AI-written and checked against the verified answer.

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