Question

question 7 of 20
which action is related to short - term planning?

a. jill is saving to travel to europe this summer with her friends.

b. tran sets up a trust for his neighborhood art class and puts 5 percent of his pay aside to fund the trust.

c. evelyn wants to retire by age 55 and puts the maximum amount she can into her 401(k) plan.

d. lillian buys a sports car and leases a garage near her apartment to protect the car from bad weather.

Explanation:

Short - term planning typically involves goals or actions with a relatively near - term (e.g., within a year or less) time horizon.

• Option A: Jill is saving for a trip this summer. Summer is a relatively short time frame (within a year), so this is a short - term goal - related action.
• Option B: Setting up a trust and regularly funding it is a long - term commitment as trusts are usually for long - term financial or social goals.
• Option C: Saving for retirement at age 55 is a long - term goal as retirement is decades away for most people.
• Option D: Buying a car and leasing a garage are immediate or short - term in terms of the action's timing, but the question is about planning. Buying a car is a one - time purchase, not really a planned action in the same sense as saving for a trip. Saving for a trip (Option A) is a planned action with a short - term goal.

Answer:

A. Jill is saving to travel to Europe this summer with her friends.