Uncertainty About the Future Is Likely to

question 141

Multiple Choice

Uncertainty about the future is likely to

• A) decrease current saving.
• B) have no impact on current saving.
• C) increase current saving.
• D) either increase or decrease current saving.

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Definitions:

Taxable Account

An investment account in which the earnings are subject to income tax.

Compounded Quarterly

The process of adding interest to the principal sum of a loan or deposit, calculated every three months.

Mortality Table

A statistical table showing the rate of death at each age, used by insurers to calculate premiums and by actuaries for statistical assessments.

Life Insurance Policies

Contracts with an insurance company in which the company pays a designated beneficiary a sum of money upon the death of the insured person.