After Christmas Is Over,Ted Riley Works Hard to Control His

question 6

Multiple Choice

After Christmas is over,Ted Riley works hard to control his expenses in February so that he can make an extra payment into a mutual fund.Which suggestion for obtaining the money needs for investing is he following?

• A)Paying himself first
• B)Taking advantage of employer-sponsored retirement programs
• C)Participating in an elective savings program
• D)Making a special effort once or twice a year to save
• E)Taking advantage of gifts, inheritance and other windfalls

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Definitions:

Personal Taxes

Taxes levied on individuals based on their income, wealth, or property ownership, affecting disposable income and purchasing power.

Personal Income

The total amount of income received by an individual or household from all sources before taxes.

Marginal Tax Rate

The percentage at which the last dollar of income is taxed, indicating how much tax will be paid on an additional dollar of income.

Decreased

A reduction in the quantity, size, intensity, or extent of something.