Question

question 12 of 20
which is true about the role of cost of living on meeting financial goals?

a. the higher the cost of living, the more it affects meeting financial
goals.

b. the lower the cost of living, the more it affects meeting financial
goals.

c. the cost of living varies from place to place but does not affect
financial goals.

d. the cost of living stays the same in any state but does affect
financial goals.

Explanation:

To determine the correct answer, we analyze each option:

• Option A: Higher cost of living means more expenses, so it has a greater impact on meeting financial goals (e.g., saving, investing) as more income is needed for basic needs. This makes sense.
• Option B: Lower cost of living should reduce the impact on financial goals, so this is incorrect.
• Option C: Cost of living does affect financial goals (e.g., a high - cost area requires more income to achieve the same goals), so this is wrong.
• Option D: Cost of living varies significantly between states (e.g., New York vs. a small town in the Midwest), so this is incorrect.

Answer:

A. The higher the cost of living, the more it affects meeting financial goals.