True or False: Individuals tend to behave differently when using credit cards compared to cash.

The statement is true because research has consistently shown that individuals often exhibit different spending behaviors when using credit cards compared to cash. When paying with cash, consumers can feel a more tangible sense of loss, which often leads to more cautious spending. Cash transactions involve a direct and immediate decrease in their available funds, which can encourage individuals to think more critically about their purchases and stick to a budget.

In contrast, credit cards can create a psychological distance between the consumer and their spending. The deferred payment and the ability to make purchases without immediate financial impact can lead to less restraint and a tendency to spend more. This phenomenon is often referred to as the "pain of payment," where cash use invokes a stronger emotional response compared to the use of credit cards.

The other options suggest limitations that do not encompass the broader behavioral trend observed across various demographics and purchase scenarios, making the original response that individuals generally behave differently when using credit cards compared to cash accurate and reflective of established behavioral finance research.