Question
Question 2 of 5 Kim delivers groceries for a living and needs to buy new tires for her car soon. Which choice would be the best for her to make so without disrupting any of her other financial goals? Withdrawing money from her retirement account Taking out a loan Making a savings plan Using a credit card
Answer
4.7
(348 Votes)
Yves
Veteran · Tutor for 9 years
Answer
C
Explanation
This question is assessing the basic financial management skills mainly about how to handle unexpected expenses. There are four options given: A. withdrawing money from her retirement account, B. taking out a loan, C. making a savings plan, D. using a credit card. A is not wise as retirement savings are intended for future financial health and withdrawing prematurely may have tax implications; B implies accruing interests; D will lead to high interest rates if not paid off in full. Conversely, C. "making a savings plan" will allow Kim to financially prepare for the tire cost over time, without accruing unwanted loan or credit card debts or dipping into her retirement savings - this option will thus have the least negative impact on her other financial goals.