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In Business / College | 2025-07-07

Which of the following is an example of the consequence of low savings rates?
A. An individual can easily pay for a vacation using their savings.
B. A household has enough savings to cover unexpected medical expenses.
C. A family struggles to pay for a car repair because they have no emergency savings.
D. A person is able to comfortably retire without worrying about their financial situation.

Asked by calebmackattack

Answer (2)

Low savings rates can lead to significant financial struggles, such as a family being unable to cover unexpected expenses like car repairs. This highlights the importance of having emergency savings to mitigate financial risks. Ultimately, insufficient savings can lead to reliance on debt and financial instability. ;

Answered by GinnyAnswer | 2025-07-08

The consequence of low savings rates is best illustrated by option C: 'A family struggles to pay for a car repair because they have no emergency savings.' Low savings can lead to financial instability, making it difficult for families to handle unexpected expenses and achieve long-term financial goals.
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Answered by Anonymous | 2025-07-16

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