Question

1. the smartest way to buy a car is to

• lease it
• take out a personal loan for it
• finance it but pay the debt as quickly as you can
• pay for it in cash

1. loans that directly help you advance in life, such as student loans, are acceptable debts.

• true
• false

1. a credit score is an indicator of how well someone pays off their debt, not how well they handle money.

• true
• false

1. what is the best way to avoid falling into debt?

• use credit to pay for large expenses now so that you have plenty of time to pay it off.
• only buy things that you can purchase with cash.
• use airline miles earned through a credit card to help pay for a vacation.
• take out a small loan for any purchases over $1,000.

1. credit card companies charge stores a 2 - 3% fee for every purchase made with credit cards. this is called a(n)...

Explanation:

1. Paying in cash avoids interest and fees associated with financing, leasing, or personal - loans, making it the smartest way to buy a car.
2. Student loans can help individuals gain education and improve their earning potential, so they are considered acceptable debts.
3. A credit score reflects a person's creditworthiness, which includes how well they pay off debts and manage money in general.
4. Using only cash for purchases ensures no debt accumulation as there is no borrowing involved.
5. The fee credit - card companies charge stores is called the interchange fee.

Answer:

1. Pay for it in cash
2. True
3. False
4. Only buy things that you can purchase with cash.
5. Interchange fee