Future Business Leaders of America (FBLA) Personal Finance Practice Test

Another advantage of credit involves:

1. Complicated repayments

2. Difficulty in returns/exchanges

3. Easier returns/exchanges

4. Lower interest rates

The correct answer is: Easier returns/exchanges

The advantage of easier returns and exchanges associated with credit is often linked to the protections and benefits offered by credit card companies. When purchases are made with a credit card, consumers typically have enhanced rights relating to returns and disputes. This includes the ability to dispute charges if the product is faulty or not as described, which can make the return process smoother compared to cash purchases. Additionally, many credit card issuers provide specific policies that favor consumers, which can facilitate easier exchanges for various products. In contrast, complicated repayments could discourage the use of credit, while difficulties in returns and exchanges could signify a drawback of using credit for purchases. Lower interest rates can also be a benefit when applicable, but they don't directly relate to the immediate benefit of return or exchange processes. Therefore, the correct answer reflects how credit can simplify the experience of returning or exchanging items.