Regarding the Amount of Money Borrowed on a Loan, All

question 5

Multiple Choice

Regarding the amount of money borrowed on a loan, all of the following are true, except

• A) the amount is based on how much the lender believes you can pay back in the future.
• B) you should borrow slightly more than you need to cover future inflation.
• C) you should only borrow the amount you need.
• D) you will have to pay interest on the entire amount.