Question

13 multiple choice 7.6 points which of the following is a major advantage that comes from paying for things with cash? spending is limited to available cash. if a person runs out of cash, she can easily make a withdrawal at an atm. people tend to buy more things when using cash. excessive spending is more likely to occur if a larger bill must be broken for a minor purchase.

Explanation:

• Analyze Option 1: When paying with cash, one can only spend the amount of cash they have on hand. This helps in budgeting and avoiding overspending as there's a clear limit to available funds.
• Analyze Option 2: The ease of ATM withdrawals is not an advantage of paying with cash itself, as it relates to accessing more cash, not a benefit of using cash for payments.
• Analyze Option 3: Studies and common financial sense suggest that people tend to spend less when using cash (due to the tangible nature of money) rather than more, so this is incorrect.
• Analyze Option 4: Breaking a large bill for a minor purchase does not typically lead to excessive spending; in fact, the limited cash on hand (from using cash) usually restricts overspending, so this is incorrect.

Answer:

A. Spending is limited to available cash.