Question

2 The cost of an item purchased on credit is lower than if purchased with cash.

O True
O False

Answer 1

The cost of an item purchased on credit is higher than if purchased with cash.

Step-by-step explanation:

The statement that the cost of an item purchased on credit is lower than if purchased with cash is False. When purchasing an item on credit, the buyer typically incurs interest charges, which increases the overall cost of the item. On the other hand, when paying with cash, there are no interest charges, resulting in a lower cost.

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