Examples of Precommitments to Deal with People's Time Inconsistency Problems

question 280

Multiple Choice

Examples of precommitments to deal with people's time inconsistency problems include the following, except

• A)automatic payroll deductions.
• B)debit card accounts.
• C)early withdrawal penalties.
• D)salary smoothing.

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Definitions:

Fiduciary Fund

A fund used to account for assets held by a government in a trustee or agency capacity for individuals, private organizations, or other governments.

Special Revenue Fund

A fund used by a government to account for revenue from specific sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.

General Fund

The general fund is the primary operating fund of a government, supporting general activities and services such as public safety, parks, and general administration.

Agency Fund

A fiduciary account used by governmental entities to manage funds collected on behalf of others, such as taxes or grants.