Which of the following statements about borrowing money is correct?
A) Borrow money for ordinary expenses such as food if you are out of cash just before the next payday
B) Save about six months of earnings for contingency purposes
C) Borrowing for things you want makes sense
D) All of the responses are correct

Question

Quizplus · Accepted Answer

Saving about six months' worth of earnings for contingency purposes is the best choice. This ensures that you have enough funds to cover unexpected expenses or a temporary loss of income without having to rely on borrowing money. Borrowing money for ordinary expenses or things you want can lead to high levels of debt and financial instability.

Which of the Following Statements About Borrowing Money Is Correct