Before Taking Out a Loan,you Should Ask Yourself Whether You

question 116

Multiple Choice

Before taking out a loan,you should ask yourself whether you can meet all of your essential expenses and still afford the monthly loan payments.This can be determined by

• A) Adding up basic monthly expenses then subtracting this total from take-home pay.
• B) Asking what you plan to give up to make the monthly loan payment.
• C) Multiplying your take-home pay by 50% and subtracting your current loan payments.
• D) Adding up basic monthly expenses, subtracting this total from take-home pay, and, if needed, figuring out what to give up to make the payment.
• E) All of these answers are correct.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.