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QuizMultiple Choice

Making Spending Decisions

Question 1 • ***CPS Online Personal Finance fall – 3-2027

Consumers who agree to a "no interest” installment plan should be aware of

Answer
A
how much is saved by avoiding cash.
B
the terms outlined in the paperwork.
C
sales that would lower prices.
D
interest rates other consumers pay.

Explanation

A “no interest” installment plan can still have conditions, such as fees or interest charged if payments are late or the balance is not paid by a certain date. Consumers should read and understand the terms outlined in the paperwork before agreeing. The amount saved by avoiding cash or the interest rates others pay does not explain their obligations under the plan.

AI-written and checked against the verified answer.

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