Accounting Fundamentals Certification (AFC) Practice Test 2025 – The Comprehensive All-in-One Guide to Exam Success!

Question: 1 / 400

Which of the following would be considered an indicator of financial stability for an individual?

Carrying high credit card debt

Frequent loan defaults

Consistent savings contribution

Consistent savings contribution is a strong indicator of financial stability for an individual. Regularly setting aside money into savings demonstrates not only financial discipline but also the ability to manage expenses and plan for future needs. This behavior reflects a commitment to building a financial safety net, which can protect against unexpected expenses and contribute to overall financial health.

Strong savings habits show that an individual prioritizes financial security and long-term planning, which are key components of stability. In contrast, high credit card debt, frequent loan defaults, and job instability signal potential financial challenges, as they indicate a struggle to manage credit and income effectively. Favorable financial behaviors, like consistent contributions to savings, help individuals navigate tough economic times while ensuring they can meet both short-term obligations and long-term goals.

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Job instability

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