Which of the Following Is Not a Type of Decision

question 4

Multiple Choice

Which of the following is not a type of decision to manage your liquidity?

• A)Deciding how much money to keep in savings
• B)Choosing between credit cards
• C)Determining how much money to save versus how much to spend
• D)Building and maintaining a monthly/yearly budget with allocations to expenses and investments

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Definitions:

Protection

Measures or strategies implemented to safeguard against financial loss, damage, or other adverse effects.

Front-end Ratio

A financial ratio that compares a person’s gross monthly income to his or her monthly housing costs.

Housing Expenses

Costs associated with owning or renting a living space, including mortgage or rent, utility bills, property taxes, and maintenance fees.

APR

The Annual Percentage Rate, which reflects the cost of borrowing on a yearly basis and includes interest and other charges.