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What Is the Bucket Approach

Question 18

Multiple Choice

What is the bucket approach?


A) A strategy whereby savings take place one fixed calendar date every several months.The large amount placed into savings at this time is the "bucket."
B) A strategy where separate savings accounts are created for each need.Each account is a separate "bucket."
C) The mistake some people make whereby they only save when large cash flows are received,similar to dipping a bucket into a river.
D) Both a and b above.
E) None of the above.

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