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When the Capital Retention Approach Is Used to Determine How

Question 47

Multiple Choice

When the capital retention approach is used to determine how much life insurance to purchase,all of the following are subtracted from total assets to calculate the capital available to produce income EXCEPT


A) investments in stocks and bonds.
B) non-income producing capital such as autos and the value of the home.
C) the amount of money needed to pay off the mortgage.
D) auto loans and credit card debt.

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