People Slip Up in Building and Maintaining Good Credit When

question 11

Multiple Choice

People slip up in building and maintaining good credit when they

• A)pay more than 14 percent of disposable income toward non-mortgage debt payments.
• B)save over long periods of time.
• C)make on-time payments on credit cards.
• D)regularly check the accuracy of credit bureau files.

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Definitions:

Cost

An amount that must be paid or spent to buy or obtain something, covering expenses such as manufacturing, labor, or materials.

Benefit

The advantage or profit gained from something, often used in the context of weighing costs against benefits in decision-making processes.

Freely Functioning Market

A market where goods and services are traded without any restrictions or interventions from governments.

Government Intervention

Actions taken by a government to affect the economy, which can include regulations, subsidies, tariffs, and taxes.