Which of the following best defines household finance?
A)The study of how a household and the people in it develop the cash flows necessary to support operations and provide for the well-being of its members.
B)The study of how much it costs to purchase a home.
C)The study of how a household and the people in it can minimize the risk of bankruptcy.
D)The study of how the number of people in a household can be maximized.
E)The study of how a household and the people in it limit expenditures and maximize cash inflows.

Question

Quizplus · Accepted Answer

Household finance is the study of how households and individuals manage their finances, including budgeting, saving, investing, and managing debt, in order to support their daily living expenses and meet long-term financial goals. Option A best defines household finance as it includes developing cash flows to support household operations and well-being. The other options are either too narrow in focus or not related to household finance.

Which of the Following Best Defines Household Finance