Which statement BEST explains the purpose of credit?

Question

Which statement BEST explains the purpose of credit?

A.
to score the finance of citizens

B.
to borrow money for a purchase

C.
to enable people to live beyond their means

D.
to create a cycle of debt that is difficult to undo

Answer 1

B. to borrow money for a purchase

Answer 2

B. to borrow money for a purchase

Answer 3

The BEST statement that explains the purpose of credit is B. "to borrow money for a purchase." Credit allows individuals to borrow money from a lender, such as a bank or credit card company, in order to make purchases or pay for expenses when they do not have enough cash on hand. With credit, individuals can have immediate access to funds for a wide range of needs, such as buying a home, purchasing a car, paying for education, or covering unexpected expenses. However, it's important to use credit responsibly and manage debt effectively to avoid unnecessary financial difficulties.