The Primary Purpose of Life Insurance Is to Provide

question 42

Multiple Choice

The primary purpose of life insurance is to provide:

• A) financial security for your dependents after your death.
• B) protection from creditors and lawsuits before your death.
• C) tax-advantaged investments for your family.
• D) high-yield investments for you and your family.
• E) liquidity to expand your business operations.

---

Definitions:

Net Capital Outflow

The difference between the domestic country's total investment abroad and foreign investments within the country, over a specific period of time.

Net Exports

The value of a country's total exports minus its total imports, representing the net value of goods and services being sold abroad.

Net Capital Outflow

The difference between a country's purchase of foreign assets and the sale of domestic assets to foreigners in a given time period.

Real Exchange Rate

The nominal exchange rate adjusted for differences in price levels between two countries, showing how many units of a foreign product can be purchased with one unit of a domestic product.