Saving is important for long-run growth: When households save that money is available for:Multiple choice question.households to borrow for investment; that borrowing leads to more capital and higher production in the future.households to borrow for investment; that borrowing leads to less capital and lower production in the future.firms to borrow for investment; that borrowing leads to more capital and higher production in the future.firms to borrow for investment; that borrowing leads to less capital and higher production in the future.

A long-term savings strategy is most useful for people who want to:A.increase the value of their investments as much as possible.B.avoid putting their money into banks or credit unions.C.withdraw their savings to pay for unexpected expenses.D.create a household budget that uses all of their monthly income

Why is it important to save a portion of your income?*1 pointTo be able to spend more on entertainmentTo be prepared for unexpected expensesTo avoid paying for taxesTo qualify for a loan

Why do people use a household budget?A.To effectively manage spendingB.To quickly increase their monthly incomeC.To lower the cost of mortgage paymentsD.To increase the value of investments

After retirement starts, which aspect of financial planning becomes paramount?Question 12Select one:A.maintaining a regular pattern of savingB.long-term borrowing commitmentsC.estate planningD.effects of inflation

Saving is something you should do…a. Only when you have extra moneyb. Regularly and consistentlyc. Only when you’re an adultd. Only when there’s something you plan to buy