In Determining Your Credit Capacity, You First Provide for Basic

question 168

Multiple Choice

In determining your credit capacity, you first provide for basic necessities, such as:

• A) furniture.
• B) home furnishings.
• C) mortgage or rent.
• D) automobile.
• E) durable goods.

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Definitions:

Market Maker

A firm or individual who actively quotes two-sided markets, providing bids and offers along with the market size of each.

Profit Maximizing

The process of making business decisions that result in the highest possible profit, by adjusting production levels, prices, and other variables.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in market balance.

Profit

The financial gain that results when the revenues generated from business activities exceed the expenses, taxes, and costs incurred.