Excessive Use of Credit Can Impair Your Ability to Save

question 10

True/False

Excessive use of credit can impair your ability to save money.

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Definitions:

Ordinary Asset

An asset used in a business or trade which is subject to ordinary income tax rates rather than capital gains tax rates if sold or exchanged.

Trade or Business

Trade or Business refers to any activity carried out for the purpose of earning income or profit, involving dealings in goods or services.

Inventory

The total amount of goods and materials on hand that are available for sale or will be used in production.

Tax Bracket

A range of income subject to a particular rate of income tax, with higher incomes typically taxed at higher rates.