Multiple Choice
Which of the following is true?
A) You should use all of your liquid assets to pay off loans when the return on the investments is high.
B) Paying off loans is appropriate when the interest rate is high and you have enough liquidity.
C) Paying off loans is wise whenever the expected rate you will earn on investments is lower than the interest rate on the loan.
D) Loan payments will not restrict your spending and saving but may prevent you from achieving financial goals.
Correct Answer:

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Correct Answer:
Verified
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