A Substantial Majority of Americans Have Inadequate Retirement Savings

question 20

Multiple Choice

A substantial majority of Americans have inadequate retirement savings.Behavioral economists attribute this to

• A)time inconsistency of preferences.
• B)lack of self-control.
• C)preferences between current and future consumption that are still being discovered.
• D)framing effects.
• E)a.and b.are both correct.

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Definitions:

Net Working Capital

Net Working Capital is a measure of a company's short-term financial health, calculated as current assets minus current liabilities.

Present Value

The contemporary valuation of future financial inflows or a lump sum, adjusted for a specific rate of return.

Rate of Return

A measure of the gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Net Working Capital

Net Working Capital is a financial metric that calculates the difference between a company's current assets and its current liabilities, indicating the company’s short-term financial health.