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Select the Letter of the Answer That Arranges the Ideas

question 6

Multiple Choice

Select the letter of the answer that arranges the ideas that develop each topic sentence below in their order of importance. Begin with the most important (or largest, most severe, most surprising) and continue to the least important. According to financial experts, the ideal budget allots certain amounts of money for different types of expenses.
____ Taxes, including federal and state income taxes and property taxes, should amount to 25 percent or less of one's total income.
____ Living expenses, including the cost of electricity, food, clothing, and entertainment, should not exceed 26 percent of one's income.
____ Four percent of one's budget should go for insurance, including life, health, and auto insurance.
____ Housing (either rent or mortgage payments) plus other debts, including auto loans and credit-card payments, should not exceed 30 percent of income.
____ Everyone should set aside 15 percent of his or her income for saving or investing.

Definitions:

Retirement

The period in an individual's life after they have ceased working, typically upon reaching a certain age.

Maturity

The date on which the principal amount of a financial instrument, such as a bond or loan, is due to be repaid.

Investment Grade

Refers to the quality of a company's credit. To be considered investment grade, a company's debt must be rated at BBB- or higher by Standard and Poor's, or Baa3 or higher by Moody's.

Standard & Poor's

A financial market intelligence company known for its stock market indices such as the S&P 500, as well as its credit ratings of borrowers.