Question

There are costs and benefits associated with various sources of credit available from different types of financial institutions. Identify each description as an advantage or disadvantage to borrowing money. (CS20)

Question 7 options:

You can spread costs over a longer period of time


It can lead you into debt


Because of interest, you end up paying more than you would have with cash


You don't have to wait to buy something

1.
Advantage

2.
Disadvantage

Answer 1

You can spread costs over a longer period of time

• Advantage

It can lead you into debt

• Disadvantage

Because of interest, you end up paying more than you would have with cash

• Disadvantage

You don't have to wait to buy something

• Advantage