Jorge has a debt ratio of 37 percent and Jose has a ratio of 102 percent.They both have the same take-home pay every month.How can we describe their current financial situation?
A)Jorge is currently solvent.
B)Jose is currently insolvent.
C)Jorge probably has more money available to enjoy every month.
D)Jose probably doesn't have much money available to enjoy every month.
E)All of the above

Question

Quizplus · Accepted Answer

Jorge's debt ratio of 37 percent indicates he owes less than he owns, suggesting solvency, while Jose's 102 percent debt ratio suggests he owes more than he owns, indicating insolvency. Given the same take-home pay, Jorge likely has more disposable income after debt payments than Jose, who may have less money available for discretionary spending.

Jorge Has a Debt Ratio of 37 Percent and Jose