It Is Better to Use Your Savings Instead of Borrowing

question 34

Multiple Choice

It is better to use your savings instead of borrowing to make a purchase when:

• A)the borrower has adequate savings.
• B)interest rates are rising.
• C)interest rates are falling.
• D)the cost of borrowing is much greater than the interest earned on savings.
• E)the interest earned on savings is greater than the interest paid on the loan.

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