An important consideration regarding applying for a loan is that

a.

it lets you purchase items now, rather than later, without affecting your budget.

b.

you may not have a good credit rating unless you have borrowed before.

c.

a longer term is preferred because of the smaller payments.

d.

it would be better to simply increase your credit card limit than take out a loan\

A brokerage firm currently limits the margin rate to 70 percent. The amount that can be borrowed for a transaction to buy 100 shares at $80 is

a.

$8000

b.

$5600.

c.

$0.

d.

$2400.

The risk of a market order is that you could pay more for a stock than you anticipated.

Select one:

True

False

To increase your net worth, you should

a.

invest in household assets.

b.

pay off a loan with cash flow.

c.

buy a luxury car.

d.

spend all cash remaining in your budget.