The Declining-Balance Method Is Widely Used by Credit Unions and Consumer

question 143

True/False

The declining-balance method is widely used by credit unions and consumer finance companies to calculate interest.

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Definitions:

Disposable Income

The amount of income left for spending or saving after taxes have been paid.

C + I

Represents the sum of consumer spending (C) and investment spending (I) in an economy's GDP formula.

Capacity Utilization Rate

A metric used to measure the degree to which a firm or economy is operating at its full potential or maximum efficiency.

Investment

The action or process of allocating resources, usually money, in order to generate income or profit.