Which of the Following Is NOT a Reason Firms and Individuals

question 55

Multiple Choice

Which of the following is NOT a reason firms and individuals borrow?

• A) They want to smooth consumption.
• B) Debt is often necessary for large purchases.
• C) They believe their return will be greater than the interest rate.
• D) They desire to have equal income and spending every period.

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Definitions:

Generosity

The quality of being kind, understanding, and not selfish; the willingness to give or share unselfishly.

Peacefulness

The state of being calm, tranquil, and free from conflict or disturbance.

Traditionals

Traditionals, often referred to as Traditionalists, are individuals or groups that adhere strictly to established practices and resist change.

Rules

Guidelines or principles that govern behavior and procedures within various contexts and organizations.