What Would Be the Maximum Limit for an Individual's Debt-To-Equity

question 94

Multiple Choice

What would be the maximum limit for an individual's debt-to-equity ratio,excluding the home mortgage?

• A)0.50
• B)0.33
• C)1.00
• D)2.00
• E)2.25

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Definitions:

Behavioral Theories

Refer to a range of theories in psychology that emphasize the importance of observable behaviors and the ways in which they are learned.

Anal-retentive Trait

A personality characteristic associated with those who are excessively orderly, neat, rigid, and controlling, stemming from Freudian psychoanalytic theory regarding psychosexual development stages.

Perfectionism

A characteristic of an individual marked by the pursuit of perfection and the establishment of extremely high standards for performance.

Gullibility

A tendency to be easily persuaded or convinced to believe something, often without critical analysis or sufficient evidence.