16
QuizMultiple Choice

Making Spending Decisions

Question 16 • ***CPS Online Personal Finance fall – 3-2027

Consumers usually save the most money on major purchases when they

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

Explanation

Saving up and paying with cash usually costs the least overall. It avoids interest charges and fees that can come with installment plans or loans, and rent-to-own agreements often cost substantially more than the item’s cash price. So the best choice is to save up to pay with cash.

AI-written and checked against the verified answer.

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