Oxford Matura Trainer PRACA Practice Exam

How is the term "free" best described in a financial context?

1. Paid

2. No cost

3. Discounted

4. Expensive

The correct answer is: No cost

In a financial context, the term "free" is best described as "no cost." This indicates that a product or service is available without the necessity of making a payment. When something is marked as free, it means the consumer can obtain it without incurring any financial burden. This usage is commonly seen in marketing and promotions, where businesses may offer free trials, services, or bonuses to attract customers. The other interpretations of "free" are less aligned with its financial meaning. While "paid" implies there is a cost involved, "discounted" suggests a reduced price rather than no cost at all. Similarly, "expensive" clearly denotes a high cost, contradicting the very essence of being free. Hence, the correct understanding in this case is that "free" signifies the absence of any charges.