Question

The appropriate use of credit Select one: a. requires the full limit of your monthly cash...

The appropriate use of credit

Select one: a. requires the full limit of your monthly cash flow and liquidity. b. means always going for the highest credit limit possible. c. should increase your credit score. d. means always making the minimum payment.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The appropriate use of credit will always be inclined towards maximization of the credit score of the individual because maximization of the credit score will be reflecting upon the creditworthiness of the borrower and it will help him in order to gain a higher amount of loan in the near future and it will be also having a better reputation of the borrower from the perspective of various lenders in future.

Appropriate use of credit is not related to using the full limit of the the credit and making the minimum payment, because these are often related to decrease of the credit score and the creditworthiness of the borrower.

Correct answer would be option (C) should increase the credit score

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following is an appropriate statement of the central limit theorem? Select just one....
Which of the following is an appropriate statement of the central limit theorem? Select just one. (1) The central limit theorem states that if you take a large random sample from a population and the data in the population are normally distributed, the data in your sample will be normally distributed.    (2) The central limit theorem states that if you take a large random sample from a population, the data in your sample will be normally distributed. (3) The...
Park Co. is considering an investment that requires immediate payment of $26,945 and provides expected cash...
Park Co. is considering an investment that requires immediate payment of $26,945 and provides expected cash inflows of $8,500 annually for four years. Park Co. requires a 7% return on its investments. 1-a. What is the net present value of this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) Cash Flow Select Chart Amount x PV Factor = Present...
1. Why do credit card companies typically require small minimum payment amounts on their customers’ monthly...
1. Why do credit card companies typically require small minimum payment amounts on their customers’ monthly credit card statements. a. Credit card companies are concerned that their customers will be put in financial distress if required to make higher payments. b. Credit card companies want to promote faster repayment, and customers will be encouraged to pay more each month if they’re able to pay well beyond the minimum. c. Credit card companies want to increase profits by promoting slower repayment,...
1. Multiple internal rates or return occur when: Select one: A. The project’s cash flows are...
1. Multiple internal rates or return occur when: Select one: A. The project’s cash flows are larger earlier in the life of the project. B. The project’s cash flows are larger later in the life of the project. C. When the project’s cash flows experience normal cash flow streams (i.e. one sign change). D. When the project’s cash flows experience non-normal cash flow streams (i.e. two or more sign changes). E. When the IRR is equal to the WACC. 2....
Use excel to build a monthly amortization table for a 30-year 5% fix-rate mortgage on a...
Use excel to build a monthly amortization table for a 30-year 5% fix-rate mortgage on a $320,000 home, with a $15,000 down payment. a. How much money will you still owe on the loan after making one full year of payments? b. How much money will you still owe on the loan after making 15 full years of payments? c. If you want to refinance after 8 years of making payments, how much financing would you need to secure from...
Which of the following is true regarding setting personal debt limits? Can be more than one...
Which of the following is true regarding setting personal debt limits? Can be more than one answer. a. Your mortgage loan and all credit card charges, especially those paid in full every month, are included in the debt payments-to-disposable income method. b. The debt limit according to the continuous-debt method is a four-year payoff period. c. For most people, your debt limit should be lower than what creditors are willing to offer. d. Under the debt-to-income method, the recommended maximum...
1) Which invoice layout in MYOB is most appropriate when recording inventory transactions? Select one: a....
1) Which invoice layout in MYOB is most appropriate when recording inventory transactions? Select one: a. Professional b. Item c. Service d. Miscellaneous 2) The Undeposited Funds Account in MYOB: Select one: a. All of these options b. Is a temporary clearing account recording each individual cash receipt c. Is cleared when the amounts receipted are actually banked d. Is used to assist with the reconciliation of the bank account 3)When customer records are set up in MYOB to track...
1.       Select the group of words missing from the statement below about the nature of cash...
1.       Select the group of words missing from the statement below about the nature of cash budgets: “Cash budgets are prepared to reflect the estimated cash ______ and _______ for the period to be covered by the budget. Clearly a projected _______ cash balance will require corrective action. Even if the cash budget predicts a _______ net balance, it may be necessary to review it to take into account any potential ________ in the expected cash flows or to provide...
Choosing a Source of Credit: The Costs of Credit Alternatives Jamie Lee Jackson, age 27, full-time...
Choosing a Source of Credit: The Costs of Credit Alternatives Jamie Lee Jackson, age 27, full-time student and part-time bakery employee, is busy setting up her new home. Her budget is a little tight now as she made the decision to move in to a place of her own, which gives her privacy and independence, but all of the expenses are now her responsibility. Jamie Lee applied for three store credit cards when she was shopping for her furnishings. The...
q 1. Liquidity refers to Select one: a. the ease of converting a financial resource into...
q 1. Liquidity refers to Select one: a. the ease of converting a financial resource into cash without a loss in value. b. the amount of insurance coverage a person has. c. a positive net cash flow to cover unexpected expenses. d. a person's inability to pay his or her debt or other obligations. Question 2 Balance sheet assets should be valued at Select one: a. insured value. b. fair market value. c. original purchase price. d. replacement value. Question...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT