Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
High levels of debt exceeding their assets
B
Lack of financial literacy and education
C
Inability to save due to high living costs
D
Poor investment choices leading to losses
Understanding the Answer
Let's break down why this is correct
Answer
A primary underlying cause of the negative average household wealth in the bottom quintile of U. S. households is the high level of debt compared to their income and assets. Many families in this group often struggle with student loans, credit card debt, and medical expenses, which can add up quickly. For example, if a family has a low income but high medical bills, they might borrow money to pay for treatment, leading to more debt than they can manage.
Detailed Explanation
Many families in the bottom group owe more money than they own. Other options are incorrect because Some people think that not knowing about money is the main issue; It's a common belief that high costs prevent saving.
Key Concepts
Wealth Disparities
Economic Mobility
Social Stratification
Topic
Wealth Disparities in the U.S.
Difficulty
hard level question
Cognitive Level
understand
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