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Which expense is a bank least likely to extend a line of credit for?

a. job training after high school
b. a flat-screen TV
c. improvements to a home
d. a car to be used for transportation to and from work

User Inversion
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1 Answer

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Final answer:

A bank is least likely to extend a line of credit for a non-essential item like a flat-screen TV, as opposed to job training, home improvements, or a car which are seen as investments or essential for work.

Step-by-step explanation:

The bank is least likely to extend a line of credit for purchasing a flat-screen TV. Generally, banks extend lines of credit for purposes that can potentially lead to an increase in personal net worth or have tangible value. These include education, such as job training after high school, which can lead to higher earning potential; improvements to a home, which can increase a property's value; and purchasing a car for transportation to work, which is a necessary expense for maintaining employment.

Purchases like a flat-screen TV, categorized under recreation, are considered luxury or non-essential items and are less likely to be seen as an investment by financial institutions, therefore they are less likely to be funded through lines of credit.

User Mogzol
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