The Disadvantage of Using an Interest Only Line of Credit

question 74

True/False

The disadvantage of using an interest only line of credit is the considerably longer time it takes to repay the loan in comparison to a traditional consumer installment loan.

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Definitions:

Inequality

The unequal distribution of wealth, opportunities, and privileges within a society.

Economic Growth

An increase in the amount of goods and services produced per head of the population over a period of time.

Modernization Theory

A theory that posits that societies progress through stages of economic development, from traditional to modern industrial economies, with corresponding social and cultural changes.

Core Capitalist Countries

Denotes nations that are at the forefront of the global economic system, characterized by strong, developed economies and significant influence over world trade and financial markets.