The Appropriate Use of Credit

question 83

Multiple Choice

The appropriate use of credit

• A)means always going for the highest credit limit possible.
• B)means always making the minimum payment.
• C)requires the full limit of your monthly cash flow and liquidity.
• D)should increase your credit score.

Identify and understand non-applicable financial instruments within the context of cash management.

Understand how personal traits, such as the need for achievement, influence individual behavior and efforts in the context of academic pursuits and task selection.

Recognize the role of parental influence in fostering a motive for success in individuals.

Comprehend the relationship between motivation, emotions, and their underlying psychological and physiological processes.

---

Definitions:

U.S. Dollar

The official currency of the United States of America, widely used as a benchmark and reserve currency globally.

Income Statement

A financial statement that shows a company’s revenue and expenses over a specific period, leading to the net income or loss for that period.

Functional Currency

Functional currency is the main currency used by a business or economic entity in its primary economic environment for accounting purposes.

Straight-Line Method

A method of accounting for depreciation by equally spreading the cost of an asset over its useful life.