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:

Shopping Product

A type of product that consumers spend a considerable amount of time comparing with other products on attributes like quality and price before purchasing.

Hotel Accommodations

Lodging options provided by hotels for guests, often including various amenities.

Airfares

The cost of passenger transportation by airplane, which can vary based on factors like timing, class of service, and route.

Free Return Policy

A policy allowing customers to return purchased items at no additional cost, enhancing consumer trust and potentially increasing sales.