Read the following passage about Buy Now, Pay Later (BNPL) and mark the letter A, B, C or D on your answer sheet to indicate the best answer...

Read the following passage about Buy Now, Pay Later (BNPL) and mark the letter A, B, C or D on your answer sheet to indicate the best answer to each of the following questions from 23 to 30.

❖        The Growth of Flexible Payment Plans

⮚        A 2025 study examined how Americans use short-term financing services, allowing delayed purchase payments. These programs, splitting costs into four equal payments without extra fees, have grown significantly since 2019. Research shows that around twenty percent of Americans with credit histories used leading providers during 2022. Many customers were frequent participants, obtaining several agreements monthly. Investigators found that holding multiple simultaneous contracts was common, with sixty-five percent managing overlapping deals from different companies.

❖        User Demographics and Debt Patterns

⮚        The study revealed concerning patterns about customer characteristics. People with poor credit ratings receive large portions of this financing. Young adults between eighteen and twenty-four depend heavily on these programs, which represent a bigger portion of their total debts compared to older groups. Customers generally have higher amounts of other debts—including credit cards, personal loans, and store accounts—than non-users. This evidence indicates these programs work mainly as extra borrowing rather than replacing traditional options, therefore increasing financial pressure for struggling families.

❖        Default Rates and Hidden Problems

⮚        Interestingly, non-payment rates stay low at about two percent yearly, much lower than credit card failures among similar customers. Automatic payment systems may explain this result, though they could hide serious financial difficulties among heavy users. A major issue involves poor reporting to monitoring organizations. Because most companies avoid sharing contract details with regular agencies, these obligations remain invisible in the credit system. Therefore, banks, government officials, and borrowers cannot properly judge total debt levels.

❖        Regulatory Uncertainty and Future Implications

⮚        Government oversight remains unclear. Although authorities previously tried classifying providers under existing protection laws, recent statements showed reduced enforcement plans. This creates confusion about future monitoring methods and safety measures. The research describes these programs as popular but poorly regulated tools increasingly used by financially weak populations, highlighting the need for better policies as this trend continues to change American borrowing habits.

https://files.consumerfinance.gov/tc

Question 23: All of the following are mentioned EXCEPT _________.

A. The specific income requirements for qualifying for these payment programs

B. The percentage of customers managing overlapping deals from different companies

C. The typical non-payment rate compared to credit card failures

D. The age group that depends most heavily on these financing services

Question 24: The word “overlapping” in paragraph 1 is OPPOSITE in meaning to _________.

A. continuous                                B. frequent                                C. parallel                                        D. separate

Question 25: The word “their” in paragraph 2 refers to _________.

A. these programs

B. young adults between eighteen and twenty-four

C. older groups

D. struggling families

Question 26: The word “invisible” in paragraph 3 could be best replaced by _________.

A. undetected                                B. uncertain                                C. temporary                                D. flexible

Question 27: Which of the following best paraphrases the underlined sentence in paragraph 4?

A. Officials once tried regulating providers, but now plan stricter enforcement measures.

B. Regulators attempted categorizing these services before, yet recently indicated weaker oversight.

C. Authorities successfully classified payment providers while currently increasing monitoring efforts.

D. Government agencies avoided regulating these companies but now propose stronger controls.

Question 28: Which of the following is TRUE according to the passage?

A. These payment programs primarily replace traditional credit options for most users.

B. Default rates exceed credit card failure rates among comparable customer groups.

C. Companies regularly report contract information to standard credit monitoring agencies nationwide.

D. Most users manage multiple overlapping contracts from various service providers simultaneously.

Question 29: In which paragraph does the writer mention why low default rates might be misleading?

A. Paragraph 1                                B. Paragraph 2                                C. Paragraph 3                                D. Paragraph 4

Question 30: In which paragraph does the writer mention why young adults are particularly vulnerable to these services?

A. Paragraph 1                                B. Paragraph 2                                C. Paragraph 3                                D. Paragraph 4