What Is the Significance of the Financial Life Cycle

question 36

Multiple Choice

What is the significance of the financial life cycle?

• A) to help you to compare your situation with other people's situation
• B) to better understand how your financial needs will most likely change over time
• C) to allow you to be more proactive in dealing with expected changes in the future and take steps today to prepare for them
• D) to help you realize that your original plan is sufficient and doesn't need to change
• E) both B and C are significant aspects of the financial life cycle

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Definitions:

Credit Rating

An assessment of the creditworthiness of a borrower in general terms or with respect to a particular debt or financial obligation.

Police Record

An official record held by police forces detailing an individual's criminal history, if any.

Résumé

A document summarizing an individual's work experience, education, skills, and accomplishments, used for job applications.