ECONOMICS (CBSE/UGC NET)

ECONOMICS

MONEY MANAGEMENT

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Joey was approved for a credit card and soon spent over $2000. What is the money owed called?

A	Debit
B	Savings
C	Debt
D	Bankruptcy

Explanation:

Detailed explanation-1: -Credit card debt is called “revolving debt” for this reason. It’s generally advised that you shouldn’t charge more than you can afford to repay at the end of each month, no matter how high your credit limit might be.

Detailed explanation-2: -The balance on your credit card is the total amount of money you owe to your credit card issuer. This amount changes each month based on how you use your card.

Detailed explanation-3: -The main types of personal debt are secured debt and unsecured debt. Secured debt requires collateral, while unsecured debt is solely based on an individual’s creditworthiness. A credit card is an example of unsecured revolving debt and a home equity line of credit is a secured revolving debt.

There is 1 question to complete.