The Main Purpose of Using a Tax-Sheltered Retirement Account to Invest

question 151

Multiple Choice

The main purpose of using a tax-sheltered retirement account to invest for retirement is to

• A)have the government ultimately collect more in taxes from you.
• B)leave more money to your heirs.
• C)provide your employer with a tax-deduction.
• D)let you accumulate more money for retirement.

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Definitions:

Homeostasis

The process by which a living organism or cell maintains stable internal conditions despite changes in its external environment.

Set-Point Theory

The hypothesis that the body regulates its weight and energy levels around a specific baseline, determined by genetics and environmental factors.

Fat Cells

Also known as adipocytes, these cells store energy in the form of fat and play an important role in energy balance.

Drive Theory

A theory in psychology that posits that behavior is motivated by drives that arise from biological needs that demand satisfaction.