Which of the following is usually considered a long-term financial strategy?
A)Creating a budget
B)Using savings to pay off a loan early
C)Renting an apartment to save for the purchase of a home
D)Investing in a mutual fund to accumulate retirement funds
E)Purchasing auto insurance to cover the needs of dependents

Question

Quizplus · Accepted Answer

Investing in a mutual fund to accumulate retirement funds is usually considered a long-term financial strategy as it involves consistent investments over a period of several years to build a sizable retirement fund. Creating a budget, using savings to pay off a loan early, and renting an apartment to save for the purchase of a home are short to medium-term strategies that focus on specific financial goals. Purchasing auto insurance is not a financial strategy but a risk management technique to cover unforeseen events.

Which of the Following Is Usually Considered a Long-Term Financial