Which of the following is NOT a reason people borrow?
A) to engage in consumption smoothing
B) to sustain themselves through periods of unemployment
C) to fund unexpected expenditures
D) to equalize income and spending period by period

Question

Quizplus · Accepted Answer

Borrowing is generally not used to equalize income and spending period by period, as income tends to vary month by month and year by year. Instead, people use other financial tools like budgeting and saving strategies to manage their income and expenses.

Which of the Following Is NOT a Reason People Borrow