Life Expectancy Is

question 3

Multiple Choice

Life expectancy is

• A)the average age of death in a given year.
• B)the average age individuals surveyed in a given year expect to live.
• C)the average age individuals born in a given year can expect to live.
• D)the average age individuals born in a given year can expect to live in good health.

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Definitions:

Precautionary Motive

The desire to hold cash or liquid assets to safeguard against future uncertainties and unplanned expenses.

Speculative Motive

The intention to hold cash for the purpose of taking advantage of future opportunities that may arise, such as bargain purchases or earning profits from price changes.

Investment Opportunities

Investment opportunities refer to avenues where individuals or entities can invest their resources with the expectation of generating a future financial return.

Float Motive

The reason businesses hold onto cash for transactional purposes, allowing them to meet short-term obligations without liquidating investments.