For the Average Individual,which One of the Following Statements Is

question 22

Multiple Choice

For the average individual,which one of the following statements is most likely correct regarding retirement?

• A)My costs of daily living will decrease significantly once I retire.
• B)I can only expect to live about ten years in retirement,so I don't need to save that much money.
• C)Once I retire,all my medical bills will be paid by Medicare.
• D)My employer's pension plan will provide sufficient income to meet all my retirement needs.
• E)I need to save whatever I can,even if it's a little bit,to help cover my retirement costs.

---

Definitions:

Home Currency Approach

A method used in international finance to evaluate investments by converting all values to one's own currency.

NPV

Net Present Value, a method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.

Yen Cash Flows

Cash flows related to financial transactions denominated in Japanese yen.

Absolute Purchasing Power Parity

A theory that states that the price of goods in different countries should be equal when measured in a common currency.