Question

1 gross income is defined as income after taxes and other withholdings have been subtracted from net income. true false 2 credit reports can affect an individuals ability to get a job, purchase a home, and obtain home and auto insurance. true false 3 approximately 10% of an individuals credit score is determined by their payment history. true false 4 financial experts recommend having an emergency fund that is equal to 3 - 6 months worth of living expenses. true false 5 credit card companies only approve credit limits that an individual is able to afford. true false 6 needs are items required for a basic level of human existence and include food, clothing and shelter. true false 7 an individual who chooses to dispute an error on their credit report can either contact the credit reporting agency or the lender that reported the incorrect information. true false 8 goals should only be made for long - term plans such as homeownership, college tuition, or retirement. true false 9 a debt - to - income ratio of more than 20% may indicate that a person has borrowed too much relative to their income. true false 10 credit reports contain information on race, and medical history.

Explanation:

1. Gross income is pre - tax income, not post - tax. So, it's false.
2. Credit reports can impact job, housing, and insurance applications, so it's true.
3. Payment history is about 35% of a credit score, not 10%, so it's false.
4. Financial experts commonly recommend 3 - 6 months of living expenses in an emergency fund, so it's true.
5. Credit card companies may over - extend credit limits, so it's false.
6. Food, clothing, and shelter are basic human needs, so it's true.
7. Disputing credit report errors can be done with agencies or lenders, so it's true.
8. Goals can be short - term or long - term, so it's false.
9. A high debt - to - income ratio like over 20% can indicate over - borrowing, so it's true.
10. Credit reports do not include race and medical history, so it's false.

Answer:

1. False
2. True
3. False
4. True
5. False
6. True
7. True
8. False
9. True
10. False