An Explanation for the Low Saving Rate in the United

question 42

Multiple Choice

An explanation for the low saving rate in the United States consistent with the precautionary reason for saving includes:

• A)relatively generous government assistance for the elderly and large down payments required for home purchases.
• B)households spending beyond their means to keep up with community standards.
• C)highly-developed financial systems making it easy to buy homes with down payments under 15 percent.
• D)confidence in future economic prosperity.

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Definitions:

Perfection

The series of legal steps a secured party takes to protect its right in collateral from other creditors that want to have their debts returned through the same collateral.

Possession

The act of having or holding property in one's control; this can range from ownership of land to possession of items or goods.

Security Agreement

An agreement in which a debtor gives a secured interest to a secured party.

Collateral

The property that is subject to a secured interest.