Which of the Following Is an Example of the Life-Cycle

question 48

Multiple Choice

Which of the following is an example of the life-cycle motive for saving?

• A)Pat puts $400 per month in his 401(k)retirement account.
• B)Jordan sets aside $200 per month in case she has to pay for a new roof for her house.
• C)Gerry and Terry put $2,000,000 in a trust fund that will go to their children when they die.
• D)Chris keeps $15,000 in a money market account to pay expenses in case he loses his job.

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Definitions:

One Wife

A marital practice where an individual is married to a single spouse at a time, also known as monogamy.

Patrilateral Parallel-cousin

A type of kinship relationship where children of a father's brother or a mother's sister are considered close relatives, often seen in cultures with strong patrilineal descent.

Parallel-cousin Marriage

A type of cousin marriage where individuals marry cousins from their parent's same sibling (e.g., two brothers' children or two sisters' children marrying each other).