Question

select the correct answer.
suppose that you have the option to buy an item with either cash or credit. under which condition would you use credit?
a. if you dont want to pay interest
b. if you want to build a good credit history
c. if you like carrying a lot of cash on you

Explanation:

• Option A: Using credit usually involves paying interest (or interest - free periods with conditions), so not wanting to pay interest would make cash a better choice, not credit.
• Option B: Using credit responsibly (like making timely payments) helps in building a good credit history. This is a valid reason to use credit.
• Option C: Liking to carry a lot of cash is a reason to use cash, not credit.

Answer:

B. if you want to build a good credit history