11
QuizMultiple Choice

Making Spending Decisions

Question 11 • ***CPS Online Personal Finance fall – 3-2027

A drawback to an installment plan is that

Answer
A
it takes longer to buy a product.
B
a large down payment is required.
C
interest rates are generally very high.
D
interest rates are generally very low.

Explanation

An installment plan lets you pay for a product over time, but borrowing the money usually adds interest to the price. The added interest can make the total cost higher, so the drawback is that interest rates are generally very high. A large down payment is not necessarily required.

AI-written and checked against the verified answer.

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