Jennifer has assets of $100,000 and $10,000 of debt.She could
A)borrow more money,since her debt ratio is low.
B)apply for a bank loan,but expect to be turned down.
C)borrow approximately $200,000 at below market rates.
D)not borrow more money until she paid off her current debt.

Question

Quizplus · Accepted Answer

Jennifer's debt ratio is low because her debt is only 10% of her assets, which generally indicates she has the capacity to borrow more money.

Jennifer Has Assets of $100,000 and $10,000 of Debt