Question

Credit tends to cost individuals more than paying in cash true or false?

Answer 1

I should say it's true. Because it's not always in cash, sometimes it's in checks, or something. :)

Answer 2

TRUE

Step-by-step explanation:

This is relatively true. Not all retailers charge a higher amount for credit payments, but most do. This is because of transaction costs. When you buy on credit, the merchant needs to pay a fee to the credit card company and for the equipment they use to pass the card. The tendency is that this cost is passed to the end consumer. When the transaction is made in cash, there is no transaction cost, so it tends to be cheaper than in credit.