Before Taking Out a Loan, You Should Ask Yourself Whether

question 129

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 adding this total to take-home pay.
• B) Asking what you plan to purchase with the loan
• C) Multiplying your take-home pay by 50% and subtracting your current loan payments.
• D) Adding up basic monthly expensesand subtracting this total from take-home pay, plus figuring out what to give up to make the monthly loan payment.
• E) None of the above

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Definitions:

Validity

How much a notion, conclusion, or metric is grounded in solid evidence and correctly mirrors the actual world.

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An intricate emotional condition leading to both physical and psychological alterations that affect one's thinking and actions.

Psychology

An examination of the human psyche and its capabilities, focusing on their impact on behavior in certain environments.

Motivation

The internal process that activates, guides, and maintains behavior towards achieving a goal.