Which statement is an advantage of using cash to finance purchases made abroad?

Which statement is an advantage of using cash to finance purchases made abroad?

• A. It is easier to steal.
• B. It is not linked to any current account, so losing cash does not reduce the current account balance.
• C. It is readily accepted by all merchants abroad.
• D. It helps to stay within budget.

Answer: (B)

Using cash for overseas purchases means spending is not tied to your bank current account. When you pay with cash, you hand over physical money and nothing is debited from your current account. If the cash is lost, your current account balance isn’t affected—the loss is only the cash you had in hand. That separation from the current account is the main advantage of using cash abroad. The other points aren’t as strong: paying with cash isn’t necessarily easier to steal (that’s a downside), cash isn’t always accepted everywhere abroad, and while cash can help with budgeting, the strongest and most direct advantage here is the lack of impact on the current account.

Using cash for overseas purchases means spending is not tied to your bank current account. When you pay with cash, you hand over physical money and nothing is debited from your current account. If the cash is lost, your current account balance isn’t affected—the loss is only the cash you had in hand. That separation from the current account is the main advantage of using cash abroad. The other points aren’t as strong: paying with cash isn’t necessarily easier to steal (that’s a downside), cash isn’t always accepted everywhere abroad, and while cash can help with budgeting, the strongest and most direct advantage here is the lack of impact on the current account.