What does "credit" allow a consumer to do?

"Credit" allows a consumer to receive a product or service now and pay for it later, making it a powerful financial tool. When a consumer uses credit, they enter into an agreement with a lender, such as a bank or credit card company, that permits them to borrow funds up to a certain limit. This enables individuals to make purchases or access services immediately, even if they do not have the necessary funds available at that moment.

This flexibility is particularly useful for larger purchases or emergencies where immediate access to funds may be necessary. It is essential, however, for consumers to manage credit wisely, as it involves the responsibility of repaying the borrowed amount, often with interest, over time. This highlights the importance of understanding credit terms and the potential long-term effects on one's financial health.

The other options do not align with the concept of credit. Buying prescription medications without payment does not accurately reflect how credit operates, and only paying with cash contradicts the very essence of credit use. Renting a property without a deposit may occur under specific circumstances, but it is not a standard function of credit. Therefore, option B correctly encapsulates the fundamental role of credit in consumer finance.