Having a Longer Term Loan

question 56

Multiple Choice

Having a longer term loan

• A) costs you more interest and therefore increases the cost of your loan.
• B) makes your monthly payments larger.
• C) is almost always the best alternative for credit users.
• D) gives you access to additional sources of financing.

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Definitions:

Families Earned

Income generated by household members through wages, salaries, investments, or other sources.

Cumulative Share

The total portion or percentage owned or contributed by an individual or entity over time.

Families Earned

Families earned describes the total income generated by all working members of a family, encompassing wages, salaries, benefits, and other forms of income.

Lorenz Curve

A graphical representation of the distribution of income or wealth within a society, showing the degree of inequality.