Social Insurance Programs Partially Replace Income That Has Been Lost

question 230

Multiple Choice

Social insurance programs partially replace income that has been lost due to the following, except

• A) retirement.
• B) disabilities.
• C) temporary unemployment.
• D) resignation from a job.

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Definitions:

Discounting

The process of determining the present value of a payment or a stream of payments that is to be received in the future.

Compounding

The process whereby interest is added to the principal sum, so that from that moment on, the interest that has been added also earns interest.

Demand Curve

A graph representing the relationship between the price of a good and the quantity demanded, with price on the vertical axis and quantity on the horizontal axis.

Loanable Funds

The money available for borrowing in the financial markets, determined by savings and investments.