An Individual Retirement Account (IRA) Is a Tax-Deferred Investment Plan

question 46

True/False

An individual retirement account (IRA) is a tax-deferred investment plan designed to encourage workers to save for retirement.

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Definitions:

Goods and Services

The output produced by a society, including tangible products (goods) and intangible items (services) that fulfill human wants or needs.

Capital

Economic resource that is used to produce goods and services, including buildings, machinery, and equipment.

Financial Assets

Resources having economic value that are held by an individual or corporation, primarily including stocks, bonds, and cash equivalents.

Entrepreneur

A profit-seeking decision maker who starts with an idea, organizes an enterprise to bring that idea to life, and assumes the risk of the operation