What Is the Purpose of Conducting a Credit Report on a Job

question 61

Multiple Choice

What is the purpose of conducting a credit report on a job candidate?

• A)To assess the individual's character and general reputation
• B)To maintain compliance with the Privacy Act of 1974
• C)To maintain compliance with the Fair Credit Reporting Act of 1971
• D)To eliminate the need for drug or polygraph testing
• E)To ensure that the applicant is a U.S.citizen

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Definitions:

APC

In economics, it stands for Average Propensity to Consume, indicating the fraction of income that is spent.

Disposable Income

Resources households have at their disposal for saving and expenditure once income taxes have been accounted for.

Marginal Propensity

Typically refers to the marginal propensity to consume (MPC), which is the proportion of an additional income that a consumer spends on goods and services as opposed to saving it.

Disposable Income

The income available for saving and spending after the deduction of income taxes from earnings is known as disposable income.