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American Bankers Association CTFA Exam - Topic 2 Question 102 Discussion

Under which of the following circumstances would it be financially beneficial to you to borrow money to buy something now and repay it with future income?
C) When you need to buy a car to get a much better paying job
A) When some clothes you like go on sale
B) When the interest on the loan is greater than the interest you get on your savings
D) When you really need a weeklong vacation

American Bankers Association CTFA Exam - Topic 2 Question 102 Discussion

Actual exam question for American Bankers Association's CTFA exam
Question #: 102
Topic #: 2
[All CTFA Questions]

Under which of the following circumstances would it be financially beneficial to you to borrow money to buy something now and repay it with future income?

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Suggested Answer: C

by Anissa at Apr 10, 2026, 01:18 PM

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Micaela
2 hours ago
A) Totally makes sense if you can save big!
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Marva
5 days ago
Wait, borrowing for clothes? That seems risky...
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Santos
10 days ago
D? Really? A vacation isn't worth going into debt for.
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Jame
16 days ago
C makes total sense. A good job can pay off the loan fast!
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Gerri
2 months ago
B is a no-brainer. Don't borrow if the loan interest is higher!
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Tula
2 months ago
Definitely A! Sales are the best time to buy!
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Magda
3 months ago
I’m torn between A and C. Buying clothes on sale sounds tempting, but I guess a car for a job is more of an investment?
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Margart
3 months ago
I practiced a similar question where timing and necessity played a big role. I feel like C is definitely the best choice here.
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Charlie
3 months ago
I'm not entirely sure, but I remember something about comparing loan interest rates to savings rates. Maybe B is relevant?
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Sharita
3 months ago
I think option C makes the most sense since getting a better-paying job could outweigh the cost of borrowing.
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