5
practice testMultiple Choice

Practice Test

Question 5 • CMS 2026-2027 Economics and Personal Finance INITIAL CREDIT

Companies report people to credit agencies if they

Answer
A
use large amounts of credit at once.
B
borrow too much money.
C
fail to use different types of credit.
D
fail to pay their bills on time.

Explanation

Companies may report missed or late payments to credit agencies, and those records can lower a person’s credit score. Failing to use different types of credit or borrowing a large amount does not, by itself, mean a company reports the person for a payment problem. The correct choice is “fail to pay their bills on time.”

AI-written and checked against the verified answer.

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