When the Capital Retention Approach Is Used to Determine How

question 47

Multiple Choice

When the capital retention approach is used to determine how much life insurance to purchase,all of the following are subtracted from total assets to calculate the capital available to produce income EXCEPT

• A)investments in stocks and bonds.
• B)non-income producing capital such as autos and the value of the home.
• C)the amount of money needed to pay off the mortgage.
• D)auto loans and credit card debt.

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Definitions:

Short-Term Lethargy

A temporary state of sluggishness or lack of energy.

Impaired Coordination

A reduction in the ability to perform movements smoothly and accurately, usually due to neurological disorders or injuries.

Prescription Drug

Medications that require a doctor's authorization before they can be purchased or consumed, typically due to their potency, side effects, or potential for abuse.

Cannabis Use

The consumption of cannabis, a psychoactive drug from the Cannabis plant, used medically or recreationally.