Naftali borrowed $15,000 from a bank to buy a motorcycle. His monthly loan payment is $250. He also spends $80 on insurance and $40 on fuel every month. Which expense is Naftali's liability?

A liability is a debt or financial obligation that must be repaid. Naftali’s $15,000 motorcycle loan is the debt he owes the bank, so it is his liability. Insurance and fuel are ongoing expenses, and the $250 payment is a monthly installment toward the loan rather than the loan itself.

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