3
AssignmentMultiple Choice

Financial Responsibility

Question 3 • Personal Finance - EL3403

Which is not a good financial decision?

Answer
A
building a savings account and taking out fewer and smaller loans in the future
B
making monthly payments on a loan on time
C
paying off a loan as soon as possible
D
frequently spending more money than is earned

Explanation

Spending more money than you earn frequently can lead to debt and make it difficult to cover regular expenses. Building savings, paying loan bills on time, and paying off debt promptly are generally good financial habits, so the poor decision is frequently overspending.

AI-written and checked against the verified answer.

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