Stacey Has a Debt Service Coverage Ratio of 1

question 100

Multiple Choice

Stacey has a debt service coverage ratio of 1.15.This tells us that

• A)Stacey's debt service charges are 1.15% of her take-home pay.
• B)Stacey has virtually no debt to service.
• C)Stacey has poor debt-carrying capacity and much of her future income will be required to service past debt.
• D)Stacey's debt reserves are only 1.15 times greater than her actual debts.

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Definitions:

States' Powers

The rights and responsibilities allocated to state governments, as distinguished from those vested in the federal government, under a federal system of governance.

Elastic Clause

A provision in the U.S. Constitution (Article I, Section 8, Clause 18) granting Congress the power to pass all laws necessary and proper for carrying out the enumerated list of powers.

Necessary

Essential or needed for a particular purpose or to achieve a specific outcome.

Enumerated Powers

Specific powers granted to Congress by the Constitution, including taxing, spending, and regulating interstate commerce, among others.