which action increases a persons net worth?\nfinding a credit card with a lower interest rate.\nincreasing…
which action increases a persons net worth?\nfinding a credit card with a lower interest rate.\nincreasing expenses.\nreducing liabilities.\nborrowing money to buy a new car.
Answer
Brief Explanations:
Net - worth is calculated as assets minus liabilities. Reducing liabilities directly increases net - worth. A lower credit card interest rate doesn't directly increase net - worth. Increasing expenses reduces net - worth if assets remain the same. Borrowing money to buy a car increases liabilities (loan) and may not necessarily increase net - worth depending on the car's value and depreciation.
Answer:
Reducing liabilities.