Which Is NOT a Reason People Save During Their Working

question 217

Multiple Choice

Which is NOT a reason people save during their working lifetimes?

• A) They save for retirement,especially if average life expectancy is higher.
• B) They save to prepare for periods of unemployment.
• C) They save to prepare for unexpected hospitalizations or illnesses.
• D) They save to match income and spending from year to year.

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Definitions:

Sales Discount

Cash discount offered to encourage prompt payment of an account receivable.

Account Receivable

Debts owed by clients to a firm for delivered goods or services awaiting payment.

Collection

The process of obtaining funds that are due or the grouping of specific items or data, often relevant in financial contexts and research.

Annual Interest Rate

The percentage that represents the cost of borrowing money or the gain from saving money on an annual basis, crucial for financial calculations.