The Number of Personal Financial Records a Household Has to Organize

question 93

Multiple Choice

The number of personal financial records a household has to organize may seem overwhelming. How long should you keep copies of your tax returns?

• A) Until you receive your refund
• B) Until the end of the current year
• C) Three years
• D) Seven years
• E) Permanently

---

Definitions:

Using Sinking Fund

The practice of setting aside money over time into a separate account to repay debt or replace a major asset in the future, thus avoiding a large lump-sum expense.

Market Value

Market value is the amount for which something can be sold in a given market at a particular time.

Redemption Value

The price per share a corporation pays to redeem or retire capital stock.

Preferred Stock

Class of capital stock that has preference to a corporation’s profits and assets.