Which of the Following Individuals Is Most Likely to Purchase

question 124

Multiple Choice

Which of the following individuals is most likely to purchase a life insurance policy that pays out an annual income beginning at a certain age until the individual's death?

• A)Ian, who expects to have a short life expectancy because of an illness
• B)Bradley who has six young children
• C)Avril, a tax attorney who wants to avoid adverse selection
• D)Alma, who expects to live a long life, based on her family history

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Definitions:

Money Supply

The sum of all financial resources circulating within an economy at a particular moment, encompassing cash, coins, and the amounts present in checking and savings accounts.

Recessionary Gap

The difference between the actual output of an economy and its potential output at full employment, during a recession.

Discount Rate

The rate at which the central bank lends money to commercial banks and other financial institutions through its discount window.

Fiscal Expenditure

Government spending, including spending on goods and services, welfare, and public works, financed through taxation or borrowing.