Which of the following statements is not true?
A) You should use all of your liquid assets to pay off loans.
B) Paying off loans is appropriate when the interest rate is relatively high.
C) Paying off loans is wise when the expected rate you will earn on investments is lower than the interest rate on the loan.
D) Loan payments you make restrict your spending and saving and may prevent you from achieving financial goals.

Question

Quizplus · Accepted Answer

Using all of your liquid assets to pay off loans is not advisable because it can leave you without emergency funds or money for necessary expenses. It's important to maintain a balance between paying off debt and retaining some liquidity for unforeseen needs.

Which of the Following Statements Is Not True