Using More Credit Than Can Be Repaid Is a Primary

question 96

True/False

Using more credit than can be repaid is a primary cause of individual bankruptcies.

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Definitions:

Face Value

The nominal value or dollar value printed on a bond, stock, or other financial instrument, indicating its worth at maturity.

Bonds Issued

Long-term debt securities sold by a corporation or government to investors to raise capital, with the obligation to pay interest and repay principal at a specified date.

Face Value

The nominal or dollar value printed on a financial instrument, such as a bond or stock, representing its official worth.

Interest

The cost of borrowing money, expressed as a percentage of the total amount loaned, or the income earned on invested capital.