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

Question

Quizplus · Accepted Answer

Paying off high-interest loans is financially prudent when you have sufficient liquidity, as it can save you money on interest payments in the long run. This approach balances debt reduction with maintaining enough liquid assets for emergencies and other financial needs.

Which of the Following Is True