While Using the Needs Analysis Approach to Determine How Much

question 22

Multiple Choice

While using the needs analysis approach to determine how much life insurance to purchase, you should:

• A)add available resources to your family's total economic needs.
• B)multiply your gross annual earnings by the size of your family.
• C)purchase the equivalent of your current annual income.
• D)divide your gross annual earnings by the size of your family.
• E)deduct available resources from your family's total economic needs.

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Definitions:

Federal Reserve Governors

Federal Reserve Governors are members of the Board of Governors of the Federal Reserve System, which oversees the United States' central banking system.

Long Terms

Agreements or financial instruments that have an extended duration or maturity period, often exceeding one year.

Medium of Exchange

A mediating tool or mechanism designed to ease the process of buying, selling, or exchanging products among individuals or entities.

Federal Reserve

The primary banking authority in the United States, tasked with setting monetary policy, supervising banking institutions, ensuring the stability of the financial system, and delivering financial services.