Laticia Is Twenty-Two Years Old and She Has All of Her

question 21

Multiple Choice

Laticia is twenty-two years old and she has all of her savings in a Certificate of Deposit at the bank that currently pays an annual 3 percent yield. The account is protected by the FDIC so it is virtually risk free. She hopes to use her savings for a down payment on a new house in ten years. Inflation in house prices in her area has averaged 5 percent per year. What financial principle from Chapter One does she need to pay better attention to?

• A) Nothing happens without a plan
• B) Waste not, want not, smart spending matters
• C) Risk and return go hand in hand
• D) all of the above are correct

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Definitions:

Biomedical Therapy

Treatments for psychological disorders that involve medical or physiological interventions, such as medication or surgery.

Depression

A psychiatric condition manifested by a lasting low spirit or a detachment from hobbies, severely disrupting routine life.

Antidepressant Drugs

Medications prescribed to relieve symptoms of depression by adjusting the chemical balance of neurotransmitters in the brain.

Biomedical Therapy

Treatment for psychological disorders that involves influencing brain chemistry, typically through drugs, surgical procedures, or similar medical interventions.