Question 27 • 26-27 Ignite Technical Math-Financial Math - MA2007
Ralph is purchasing a new gaming system for $300.00. He is trying to decide whether he wants to use cash or his credit card to pay. He has $600.00 available in his checking account. Which of the following is not an argument that justifies Ralph's use of his cash to purchase the gaming system?
Answer
A
Using cash can help Ralph improve his credit score.
B
Using cash may limit overspending or impulse buying.
C
Cash doesn't come with any potential "over limit" or "late payment" fees.
D
Cash will be the easiest method of payment with very few security measures involved.
Explanation
Paying with cash does not build a credit history or improve a credit score; using credit responsibly and paying bills on time can. The other choices describe possible benefits of cash, such as helping limit spending and avoiding credit-card fees. Therefore, “Using cash can help Ralph improve his credit score” is not a valid argument for paying with cash.
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