When Misused , Credit Can Result in

question 13

Multiple Choice

When misused , credit can result in

• A) Default.
• B) Bankruptcy.
• C) Loss of creditworthiness.
• D) A less satisfying life.
• E) All of the above.

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Definitions:

EAR

Ear is the acronym for Effective Annual Rate, which measures the real return on an investment or the real interest rate on a loan, accounting for compounding over a specified period.

Monthly Stream

A monthly stream often refers to consistent or recurring flows of income, payments, or data that occur every month.

Discount Rate

An interest rate used to discount future cash flows to their present value, often central in determining the value of investments.

Trust Fund

A fund comprised of a variety of assets intended to provide benefits to an individual, group, or organization.