Sometimes it may be better to use savings rather than credit to make a purchase.This would be recommended when
A)the borrower has adequate savings.
B)interest rates are rising.
C)interest rates are falling.
D)the cost of borrowing is greater than the interest earned on the savings.
E)interest earned on savings is greater than the interest paid on the loan.

Question

Quizplus · Accepted Answer

Using savings rather than credit would be recommended when the cost of borrowing is greater than the interest earned on savings. This is because in such a scenario, borrowing would lead to more expenses than savings. It is always better to use savings to make purchases than taking credit, as it would save a lot of money on interest charges.

Sometimes It May Be Better to Use Savings Rather Than