A Bond Ladder _________________

question 72

Multiple Choice

A bond ladder _________________.

• A) Helps reduce the risk of interest rates changes by spacing out the maturities
• B) Refers to monthly contributions into a bond mutual fund
• C) Guarantees that you will always get the best interest rates on the bonds you invest in
• D) Is a strategy that helps you achieve your financial goals by "climbing the ladder"

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Definitions:

Percentage Of Total Income

A metric that expresses an individual's, sector's, or group's income as a fraction of the overall income earned within a larger entity, such as a country.

Bottom 20%

The bottom 20% typically refers to the lowest quintile in a distribution, such as income levels, often used to describe those with the lowest earnings.

Families

Groups of individuals related by blood, marriage, or adoption who live together and share economic, emotional, and social ties.

Income Inequality

The uneven allocation of income among individuals or households within an economic system.