Precautionary Saving Is Saving For

question 82

Multiple Choice

Precautionary saving is saving for:

• A) retirement, when income falls.
• B) unpredictable expenses.
• C) bequests to benefit children.
• D) repayment of debt previously incurred.

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Definitions:

Cognitive Component

Refers to the beliefs, thoughts, and knowledge that influence how an individual understands and interacts with the world.

Affective Component

Pertains to the emotional aspect of attitudes, reflecting feelings or emotions related to an object, person, or event.

Behavioural Component

The aspects of psychology related to the actions or reactions of individuals usually in response to external stimuli.

Cognitive Component

Refers to the beliefs, thoughts, and knowledge about the subject at hand, which is a part of an attitude.