Which of the following is true?
A) You should use all of your liquid assets to pay off loans when the return on the investments is high.
B) Paying off loans is appropriate when the interest rate is high and you have enough liquidity.
C) Paying off loans is wise whenever the expected rate you will earn on investments is lower than the interest rate on the loan.
D) Loan payments will not restrict your spending and saving but may prevent you from achieving financial goals.
Correct Answer:
Verified
Q42: Monitoring liquidity includes tracking your
A)RRSP balances.
B)emergency funds.
C)TFSA
Q43: Personal financing
A)allows you to make grocery purchases
Q44: The first component in creating a financial
Q45: You should not make investments after you
Q46: To invest in mutual funds of small
Q48: What is meant by the financing trade-off?
A)Financing
Q49: Financing does not allow you to make
Q50: What is the liquidity trade-off?
A)Determining the best
Q51: We should recognize how the components of
Q52: The more you spend, the less money
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents