Gayle Is 42 Years Old, Single, and Does Not Plan

question 88

Multiple Choice

 Gayle is 42 years old, single, and does not plan to marry. She has taught school for 20 years and plans to retire in 12 more years. Last year, Gayle began to contribute to a teacher's retirement plan and to an individual retirement account (IRA) . She is in good health, and her hobbies include reading, embroidery, gardening, and bowling. She attends an aerobic dance class 3 times each week and has done so for years. Gayle has a family history of diabetes, so she takes her health seriously. Gayle is beginning to notice some age-related changes in her body, but she accepts them as normal. She has a good network of friends that she vacations with every year. She likes to travel and enjoys life.
-Which of the following statements about Gayle is FALSE?

• A)Gayle's diverse interests will help her enjoy her leisure time when she retires.
• B)Gayle's exercise habits and hobbies can help prevent arthritis.
• C)Gayle began saving for retirement early enough to support herself.
• D)Gayle will need to take special care to prepare her finances for retirement.

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Definitions:

Financial Statements

Official records that outline a company's financial activities and conditions, including the balance sheet, income statement, and cash flow statement.

Firm's Financial Position

The status of a company's assets, liabilities, and equity at a given point in time, as reflected in its financial statements.

Market/Book Ratio

Also known as the price-to-book ratio, it compares a company's market value with its book value, indicating how much investors are paying for each dollar of net assets.

Stock Price

Stock price is the current market price of a share of stock, reflecting the value the market places on a company.