You Should Never Borrow to Cover Regular Expenses, but It

question 66

True/False

You should never borrow to cover regular expenses, but it makes perfectly good sense to use credit to cover unexpected expenses such as car or home repairs.

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Definitions:

Cash Flows

The aggregate sum of cash inflows and outflows in a business, significantly impacting its ability to meet short-term obligations.

Investing Activities

Financial activities related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Buying Stocks

The act of purchasing shares in a company with the expectation of earning a return on investment through dividends or stock price appreciation.

Cash Flow

Cash flow refers to the net amount of cash and cash-equivalents being transferred into and out of a business.