Which Is NOT a Reason People Save During Their Working

question 217

Multiple Choice

Which is NOT a reason people save during their working lifetimes?

• A) They save for retirement,especially if average life expectancy is higher.
• B) They save to prepare for periods of unemployment.
• C) They save to prepare for unexpected hospitalizations or illnesses.
• D) They save to match income and spending from year to year.

Identify major causes and indicators of income inequality within an economy.

Comprehend how shifts in Lorenz curves indicate changes in income inequality.

Recognize the role of non-cash transfers and government policies in affecting income distribution.

Assess the impact of individual qualities and external factors on earnings and income inequality.

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Definitions:

Retaining Earnings

The practice of holding onto a company's profits to reinvest in the business rather than distributing them as dividends to shareholders.

Net Worth

The total assets minus total outside liabilities of an individual or a company.

Interest Rate

The cost of borrowing money or the return on savings, expressed as a percentage of the principal.

Annual Interest Rate

The percentage of the principal that is paid as a fee over a period of one year for borrowing or saving money.