Which of the Following Is a Factor That Is Most

question 26

Multiple Choice

Which of the following is a factor that is most likely to discourage people from trying to spend funds from their retirement accounts?

• A) Funds from retirement accounts cannot be invested in stocks and bonds.
• B) The Internal Revenue Service usually adds a 10% penalty for early withdrawals from retirement accounts.
• C) Earnings from retirement accounts are nontaxable only if they are withdrawn at least 25 years after starting the account.
• D) The Securities and Exchange Commission freezes retirement accounts after a single instance of early withdrawal from the accounts.

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Definitions:

Cognitive Dissonance

The psychological discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Social Comparison

The process by which individuals evaluate their own abilities, achievements, and emotional states in relation to others.

Opponent Processes

A theory suggesting that emotions are regulated by mechanisms that operate in opposition to each other, helping to explain emotional contrasts.

Social Exchange

A theory in social science that suggests human relationships are formed by the use of a subjective cost-benefit analysis and the comparison of alternatives.