American Bankers Association CTFA Exam - Topic 2 Question 102 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 102
Topic #: 2

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?

AWhen some clothes you like go on sale

BWhen the interest on the loan is greater than the interest you get on your savings

CWhen you need to buy a car to get a much better paying job

DWhen you really need a weeklong vacation

Show Suggested Answer

Suggested Answer: C

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

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Gerri

18 days ago

B is a no-brainer. Don't borrow if the loan interest is higher!

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Tula

23 days ago

Definitely A! Sales are the best time to buy!

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Magda

1 month 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

1 month 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

2 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

2 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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