Which of the Following Is Usually Considered a Long-Term Financial

question 117

Multiple Choice

Which of the following is usually considered a long-term financial strategy?

• A)Creating a budget this year
• B)Using savings to pay off a loan within one year
• C)Renting an apartment for three years to save for the purchase of a home
• D)Investing in a mutual fund for six years to accumulate retirement funds
• E)Purchasing a six month auto insurance policy to cover the needs of dependents

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Definitions:

Dollar Value

The worth of a good or service expressed in terms of the amount of money that it can be bought or sold for in the market.

Form Utility

The value added by the process of transforming raw materials into a finished product that is more useful and valuable to consumers.