Question

Which accurately describes the purpose of a credit plan?(1 point)
Responses

to ensure that anything bought with credit can be paid off within two years at most
to ensure that anything bought with credit can be paid off within two years at most

to understand how, and how much, one will pay for an item that cannot be bought immediately with cash
to understand how, and how much, one will pay for an item that cannot be bought immediately with cash

to project how much money will accumulate in one’s savings account over time
to project how much money will accumulate in one’s savings account over time

to track different monthly expenses and ensure that they stay within one’s income

Answer 1

The statement that accurately describes the purpose of a credit plan is:

**to understand how, and how much, one will pay for an item that cannot be bought immediately with cash.**

This option encompasses the key aspects of managing credit effectively, including understanding the costs associated with borrowing and planning for repayment.