Questions You Should Consider Before You Decide How and When

question 27

Multiple Choice

Questions you should consider before you decide how and when to make a major purchase include all except

• A)do I have the cash I need for a down payment
• B)do I want to use my savings for this purchase
• C)could I postpone this purchase
• D)what are the psychological costs of using credit (being in debt and responsible for monthly payments)
• E)all these questions should be considered

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Definitions:

State Income Taxes

Taxes imposed on income by individual states, varying in rates and structures, applicable to income earned by residents and, in some cases, non-residents working in the state.

U.S. Treasury Bonds

Long-term government debt securities issued by the U.S. Department of the Treasury with a maturity of more than ten years, offering periodic interest payments to investors.

Subprime Mortgages

are loans granted to borrowers with low credit scores, posing a higher risk of default.

Credit Ratings

Assessments made by credit rating agencies regarding the creditworthiness of an issuer of certain types of debt, including corporations and government entities, impacting interest rates and terms of loans.