Credit is commonly used to cover both large and small expenses.What is the best way to think about credit?
A)Most Canadian are overextended on credit.
B)It is a better source of liquidity than an emergency fund.
C)It is an important part of liquidity but needs to be managed.
D)It should never be used for liquidity.

Question

Quizplus · Accepted Answer

Credit can be an important part of liquidity, but it needs to be managed carefully. It is important to only borrow what you can afford to repay and to make payments on time to avoid high interest rates and fees. Additionally, relying too heavily on credit can lead to debt and financial stress. Therefore, credit should be used responsibly and with a plan in place for repayment.

Credit Is Commonly Used to Cover Both Large and Small