A Good Rule of Thumb Is to Limit Consumer Credit

question 75

Multiple Choice

A good rule of thumb is to limit consumer credit payments to ____________ percent of your net monthly income.

• A) 20
• B) 30
• C) 40
• D) 50
• E) 60

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Definitions:

Familiarity

The state of being easily recognizable or well-known to someone due to repeated exposure or experience.

Accountability

The obligation of an individual or organization to account for its activities, accept responsibility for them, and to disclose the results in a transparent manner.

Practical Intelligence

Intelligence that involves the ability to solve everyday problems by utilizing knowledge gained from experience in order to adapt to, shape, or select environments.

Sternberg's Triarchic Theory

A theory of intelligence that considers analytic, creative, and practical aspects.