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CTFA · Question #250

Consider someone who takes home $2500 a month. Using a 20% ratio, he/she should have monthly consumer credit payments of no more than $500 i.e., $2500*0.20= $500. This is the _________ amount of her…

The correct answer is A. Maximum. See the full explanation below for the reasoning.

Fiduciary and Trust Activities

Question

Consider someone who takes home $2500 a month. Using a 20% ratio, he/she should have monthly consumer credit payments of no more than $500 i.e., $2500*0.20= $500. This is the _________ amount of her monthly disposable income that she should need to pay off both personal loans and other forms of consumer credit.

Options

  • AMaximum
  • BMinimum
  • CSame
  • DActual

How the community answered

(35 responses)
  • A
    71% (25)
  • B
    17% (6)
  • C
    9% (3)
  • D
    3% (1)

Topics

#debt ratio#consumer credit limit#disposable income#credit management

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