Which Event Can Have a Positive Effect on Your Credit

question 76

Multiple Choice

Which event can have a positive effect on your credit report?

• A) Declared bankruptcy.
• B) Taking out a student loan.
• C) Losing a home to foreclosure.
• D) Both declared bankruptcy and losing a home to foreclosure.

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Definitions:

Business Cycle

The natural rise and fall of economic growth that occurs over time, including periods of expansion, peak, recession, and recovery.

External Shocks

Events outside the economic system that can cause sudden and significant changes within an economy, such as natural disasters or geopolitical events.

Last Recession

Describes the most recent period of significant decline in economic activity across the economy, lasting more than a few months.

Winter 1989-90

A specific time period referring to the winter months of December 1989, January 1990, and February 1990, often notable for its weather or events occurring then.