Ted and Alice Want to Make Sure That Their Children

question 134

Multiple Choice

Ted and Alice want to make sure that their children will inherit lots of money when they die, so that their children do not have to struggle the way that they themselves did. Saving more in response to this is a ______ reason for saving.

• A) life-cycle
• B) bequest
• C) private
• D) precautionary

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Definitions:

Royalties

Payments made to a rights holder, such as an author, artist, or patentee, for the use of their original work or invention.

Patents

Legal rights granted to inventors that give them exclusive rights to use, make, and sell their invention for a certain period of time.

Songs

Musical compositions that are sung or played by voices or instruments.

Primarily Rental

Refers to a property whose main use is for renting out to tenants rather than as a primary residence for the owner.