Robert Smith Has Monthly Net Income of $1,200

question 104

Multiple Choice

Robert Smith has monthly net income of $1,200.He has a house payment of $550 per month,a car loan with payments of $250 per month,a Visa card with payments of $40 per month,and a credit card with a local department store with payments of $58 per month.What is Robert's debt payments-to-income ratio?

• A)0%
• B)8%
• C)75%
• D)29%
• E)20%

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Definitions:

Means-tested Income Transfers

Financial transfers or benefits given to individuals or families whose income falls below a certain level, aimed at reducing poverty and income inequality.

Transfer Recipients

Individuals or entities that receive benefits or payments from government programs without providing goods or services in return.

Samaritan's Dilemma

A dilemma faced by a benefactor who must decide the extent of assistance to a beneficiary, knowing that too much help can lead to dependency.

Transfer Programs

Government initiatives designed to redistribute income through mechanisms like subsidies, grants, or social assistance to support various segments of the population.