Robert Smith Has Monthly Net Income of $1,050

question 123

Multiple Choice

Robert Smith has monthly net income of $1,050.He has a house payment of $450 per month,a car loan with payments of $250 per month,a Visa card with payments of $50 per month,and a credit card with a local department store with payments of $100 per month.What is Robert's debt payments-to-income ratio?

• A)2.63
• B)1.24
• C)0.81
• D)0.38
• E)0.50

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Definitions:

Other-Race Effect

The tendency to more easily recognize faces of one's own race, compared to faces of other races, often attributed to social and cognitive factors.

Aggression

Behavior aimed at causing harm or pain to another being, which can be physical or verbal.

Hindsight Bias

The tendency to believe, after an event has occurred, that one would have predicted or expected the outcome, often known as the "I-knew-it-all-along" phenomenon.

Just-World Phenomenon

The Just-World Phenomenon is a cognitive bias wherein individuals believe that the world is inherently fair, leading them to rationalize others' suffering as deserved due to their actions.