Which of the Following Combinations of Expenses Use Up Most

question 29

Multiple Choice

Which of the following combinations of expenses use up most household income?

• A) housing, insurance, taxes
• B) food, housing, transportation
• C) food, travel, savings
• D) housing, taxes, transportation
• E) food, housing, retirement planning

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Definitions:

Dividends

Dividends are payments made by a corporation to its shareholder members, representing a portion of the corporate profits distributed.

Dividend-payout Ratio

The percentage of net income paid to shareholders in the form of dividends.

Share Price

The price of a single share of a number of saleable stocks of a company, derivative, or other financial asset.

Plowback Ratio

Plowback Ratio, also known as the retention ratio, is the proportion of earnings that a company retains and reinvests in its operations, rather than distributing as dividends.