Your Decision About One Component of Your Financial Plan Can

question 6

Multiple Choice

Your decision about one component of your financial plan can affect all other components.Which statement is true?

• A) The amount of insurance you choose to carry has no effect on your investing decisions.
• B) There will never be any trade-offs to consider when making decisions about your financial plan.
• C) If you make poor investment decisions, you may have to work longer than planned.
• D) You should contribute all of your extra money to your retirement account even if it means you don't have money available for products and services today.

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Definitions:

Ration Coupons

Physical or digital vouchers issued by governments or organizations to allow individuals to purchase a limited amount of scarce commodities, historically used during times of war or shortages.

Price Ceiling

Legislation or regulation that sets the maximum legal price a seller can charge for a product or service to prevent market prices from rising above a certain level.

Shortage

A situation in which the demand for a good or service exceeds its supply in a market.

Surplus

is an economic situation in which the quantity of a good supplied exceeds the quantity demanded at the current price, often leading to a decrease in prices.