Identify the Demographic Factor(s) That Make Financing the Social Security

question 41

Multiple Choice

Identify the demographic factor(s) that make financing the Social Security program problematic.

• A) More people are living beyond age 65.
• B) After reaching 65, people live much longer than in earlier generations; average life spans are now 14 years longer than when Social Security was created in 1935.
• C) There is a higher proportion of the population who are not working compared to the proportion who are.
• D) all of the above

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Definitions:

Buying A Call

Involves purchasing a call option, giving the buyer the right, but not the obligation, to buy a specific asset at a predetermined price within a specified time frame.

Selling A Call

A strategy in options trading where the seller of the call option is obligated to sell the underlying asset at a specified price if the option is exercised.

Stock Price

The cost of purchasing a share of a company's stock, reflecting the market's valuation of the company.

Hedging

A financial strategy used to reduce or eliminate the risk of price fluctuations for commodities, currencies, or securities.