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Match each term with its definition.

AFinancial planning.

Personal satisfaction gained from consumption.

BRational choice.

Reluctance for taking chances.

CRisk aversion.

A decision-making method that compares costs and benefits.

DUtility.

A strategy to save for financial goals.

Verified Answer :

Here is the pair:

-  Financial planning  -  A strategy to save for financial goals.
financial planning is done to ensure that individuals or companies would achieve healthy financial growth.

- Rational choice  - A decision-making method that compares costs and benefits.
A choice is considered as rational if the benefit outweigh the cost

- Utility - Personal satisfaction gained from consumption.
For example, when you drink a soda after working out, the loss of thirst is considered to be a utiliy

- Risk aversion - Reluctance for taking chances.
Risk aversion is most commonly used by investors to avoid experiencing unnecessary loss

Answer:

A. Financial planning. : A strategy to save for financial goals.

B. Rational choice. : A decision-making method that compares costs and benefits.

C. Risk aversion.: Reluctance for taking chances.

D. Utility. : Personal satisfaction gained from consumption.

Explanation:

  • The terms are described above have a specific meaning and are based on the economic terms of any business environment.

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