Choose the Word or Phrase in [ ] Which Will

question 48

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Nancy's take-home income is $3,000 per month,and she currently has $700 of monthly consumer debt payments.According to the general rules of thumb,Nancy [is | is not] in a position to take on additional consumer debt.

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Definitions:

Risk Averse

The preference for certainty over uncertainty, with individuals or entities avoiding risks when making decisions.

Interest Rates

The cost of borrowing money, expressed as a percentage of the total amount loaned, or the return on invested money.

Efficient Markets Hypothesis

A theory that suggests financial markets are informationally efficient, meaning prices of traded assets reflect all available information at any given time.

Interest Rates

The cost of borrowing money or the return on investment for savings, often expressed as a percentage.