News Article Comprehension 36

Why did Nora accumulate debt with her town council?

• Due to frequent spontaneous indulgences

• Unforeseen emergencies and unplanned expenses

• Inability to manage her monthly income

• Poor financial decisions on her part

Answer explanation

Nora accumulated debt primarily due to unforeseen emergencies and unplanned expenses, such as a faulty washing machine repair and a late-night clinic visit.

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Making Inferences

What was the outcome of Zoe's initial attempt to save $50 a month?

• She successfully saved the amount each month.

• She experienced financial hardship and accumulated more debt.

• She felt judged and left the savings program.

• She received additional financial support from the program.

Answer explanation

Zoe felt judged and left the savings program after expressing difficulty in setting aside $50 a month.

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Identifying Main Ideas

What positive change did Zoe experience after revising her savings plan?

• She received a higher matching amount from the program.

• She achieved a modest level of savings and renewed her program application.

• She abandoned the savings plan entirely.

• She confronted the program organizers for their lack of empathy.

Answer explanation

After revising her savings plan, Zoe achieved a modest level of savings, renewed her application, and felt a sense of control over her life.

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Identifying Main Ideas

According to the article, what is the impact of chronic debt on individuals in poverty?

• Increased financial stability

• Improved cognitive functioning

• Psychological and cognitive impairment

• It has no impact on individuals' well-being

Answer explanation

Chronic debt in poverty causes significant psychological and cognitive impairment, affecting decision-making, as mentioned by social work researchers and behavioral science professors.

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Making Inferences

What is the author's main concern about incentivizing programs to alleviate poverty?

• The insufficiency of financial incentives

• The potential disincentivization when aid is withdrawn

• The lack of empathy from service providers

• The focus on structural factors contributing to poverty

Answer explanation

The author is concerned that the use of incentives and rewards may take a transactional approach, potentially disincentivizing people when aid is withdrawn, instead of driving long-term change.

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Identifying Main Ideas