2
QuizMultiple Choice

N/A — Exam

Question 2 • Personal Finance and Economics

Why would a consumer choose to pay cash?

Answer
A
to take advantage of low interest
B
to spread payments out over time
C
to avoid saving for a down payment
D
to pay the lowest possible price

Explanation

Paying cash means the consumer does not borrow money, so there is no interest cost. Cash buyers may also be able to negotiate a lower price, making this a good choice for someone seeking the lowest possible price. Spreading payments over time and avoiding a down payment are reasons to use credit instead.

AI-written and checked against the verified answer.

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