If You Cosign a Loan, All of the Following Are

question 103

Multiple Choice

If you cosign a loan, all of the following are true except,

• A)you are being asked to guarantee the debt.
• B)it is your legal responsibility to pay the debt.
• C)you'll have to pay only a portion of the debt if the borrower does not pay.
• D)the creditor must first try to collect from the borrower.
• E)the creditor can garnish your wages.

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Definitions:

Inflation

A general increase in prices and fall in the purchasing value of money.

Monetary Growth

An increase in the money supply in an economy over time, which can influence inflation and economic activity.

Government Surplus

The situation where a government's income from taxes and other sources exceeds its expenditure over a specified period.

Keynesians

are economists or adherents of the economic theories of John Maynard Keynes, who advocated for government intervention in markets to mitigate the adverse effects of economic cycles.