Households Save Through Life Insurance Reserves, at Least in Part

question 39

Multiple Choice

Households save through life insurance reserves, at least in part, because

• A)life insurance reserves are very liquid.
• B)the transactions costs of saving in this way are very low.
• C)life insurance reserves receive favorable tax treatment.
• D)life expectancy in the United States has been declining.

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Definitions:

Reaction

A process in which substances interact to form new substances with different physical and chemical properties.

Pentanamide

An organic compound characterized by the presence of a five-carbon chain terminated with an amide group, with the formula CH3(CH2)3CONH2.

1-Pentanamine

An organic compound, a type of primary amine with the chemical formula C5H13N, used in chemical synthesis and as an intermediate.

Reagent

A substance or compound added to a system to cause a chemical reaction or test for a reaction.