One Technique for Establishing a Sizable Savings Balance Is To

question 53

Multiple Choice

One technique for establishing a sizable savings balance is to:

• A)follow the "pay yourself last" approach.
• B)have a predetermined amount from each paycheck automatically deposited into the savings account.
• C)invest in one specific financial security rather than invest in a diversified financial portfolio.
• D)use traditional banks instead of online savings banks because they typically pay higher rates of interest.

---

Definitions:

Total Utility

The total satisfaction received from consuming a given total quantity of a good or service.

Income

The money received by an individual or business in exchange for labor, services, or investment, constituting a basis for consumption and savings.

Consumer Equilibrium

The point at which the amount of goods purchased by a consumer is equal to their preference at prevailing market prices, maximizing utility.

Utility

The satisfaction or benefit a consumer derives from consuming a good or service.