Sometimes It May Be Better to Use Savings Rather Than

Multiple Choice

Sometimes it may be better to use savings rather than borrowing to make a purchase.This would be recommended when:

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