When Applying for a Personal Loan, You Will Be Required

question 35

True/False

When applying for a personal loan, you will be required to fill out a loan application but you will seldom need a personal balance sheet or a personal cash flow statement.

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Definitions:

Cash Flow Analysis

A detailing of how money comes in and how money goes out over a fixed period of time.

Budget

An estimate of income and expenditure for a set period of time.

Budget Line Equation

An economic model that represents all combinations of goods and services that a consumer may purchase given current prices within their income level.

Entertainment Budget

An estimate of the money allocated for leisure and entertainment activities within a certain period.