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Wealth Disparities in the U.S.
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What primarily contributes to the negative average household wealth in the bottom quintile in the U.S.?

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Choose the Best Answer

A

High levels of debt outweighing assets

B

Lack of financial literacy

C

Low income from employment

D

Excessive spending habits

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Answer

The negative average household wealth in the bottom quintile in the U. S. is primarily due to high levels of debt combined with low income. Many families in this group often struggle to make ends meet, leading them to rely on loans and credit cards, which can create a cycle of debt. For example, if a family earns a low income but has significant medical bills or student loans, their total debts can exceed their assets, resulting in negative wealth.

Detailed Explanation

Many people in the bottom wealth group have more debt than they own in assets. Other options are incorrect because Some think that not knowing about money is the main issue; It's a common belief that low pay is the main reason for negative wealth.

Key Concepts

Wealth Disparities
Economic Mobility
Social Stratification
Topic

Wealth Disparities in the U.S.

Difficulty

easy level question

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