#1
Which of the following statements is true about using credit cards?
Using credit cards can help build a credit history.
ExplanationCredit cards contribute to establishing a positive credit history.
#2
What is a key benefit of using cash for purchases?
Cash allows for easier tracking of expenses.
ExplanationCash transactions simplify expense tracking.
#3
When comparing credit and cash, which of the following is a disadvantage of using credit?
Credit cards often have fees and interest charges.
ExplanationCredit usage may entail fees and interest costs.
#4
How does using credit impact your overall financial health?
Using credit can improve your credit score if managed responsibly.
ExplanationResponsible credit use enhances your credit score.
#5
What factor should you consider when deciding between using credit or cash?
The item's price and your ability to repay the credit
ExplanationConsider the item's cost and your ability to repay credit.
#6
Which of the following is an advantage of using credit cards over cash?
Credit cards offer rewards such as cashback or points.
ExplanationCredit cards provide rewards like cashback or points.
#7
How does using cash for purchases affect your budgeting?
Cash helps you stick to a budget more easily.
ExplanationCash usage facilitates budget adherence.
#8
Which of the following scenarios is an example of when it might be better to use cash instead of credit?
Buying groceries
ExplanationCash is preferable for everyday purchases like groceries.
#9
Which of the following is a disadvantage of using cash for purchases?
Cash can be lost or stolen more easily than credit cards.
ExplanationCash is more susceptible to loss or theft.
#10
In what situation might using credit be more beneficial than using cash?
When you need to make a large purchase and can pay it off over time
ExplanationCredit is advantageous for large purchases with extended payment.
#11
Which of the following is an advantage of using credit cards for purchases?
Credit cards make it easier to track your spending.
ExplanationCredit cards simplify spending tracking.
#12
When might using cash be a better option than using credit cards?
When you want to avoid interest charges.
ExplanationCash is preferable to avoid interest charges.