Which of the Following Is True

question 75

Multiple Choice

Which of the following is true?

• A)You should use all of your liquid assets to pay off loans when the return on the investments is high.
• B)Paying off loans is appropriate when the interest rate is high and you have enough liquidity.
• C)Paying off loans is wise whenever the expected rate you will earn on investments is lower than the interest rate on the loan.
• D)Loan payments will not restrict your spending and saving but may prevent you from achieving financial goals.

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Definitions:

Output Increases

A situation where the production level of goods or services in an economy or firm rises.

Scale of Production

Scale of Production refers to the size of operations for manufacturing or producing goods, impacting the costs and efficiency of production.

Average Costs

The total costs divided by the quantity of goods produced, measuring the cost per unit of production.

Industry Exhibits

Industry Exhibits are organized events where companies from a specific industry showcase and demonstrate their latest products, services, and technologies to potential clients, investors, and the public.