All of the following situations are valid reasons to borrow funds, except
A) a medical emergency.
B) a college education.
C) purchasing a car in order to return to the workforce.
D) borrowing for everyday living expenses.

Question

Quizplus · Accepted Answer

Borrowing for everyday living expenses is generally not considered a valid reason to borrow funds because it indicates a lack of budgeting and can lead to a cycle of debt. Loans are typically recommended for investments that offer returns, such as education, or for emergencies.

All of the Following Situations Are Valid Reasons to Borrow