Match each term with its definition.

A. Financial planning.

Personal satisfaction gained from consumption.

B. Rational choice.

Reluctance for taking chances.

C. Risk aversion.

A decision-making method that compares costs and benefits.

D. Utility.

A strategy to save for financial goals.

Here is the pair:

- Financial planning - A strategy to save for financial goals.

financial planning is done to ensure that individuals or companies would achieve healthy financial growth.

- Rational choice - A decision-making method that compares costs and benefits.

A choice is considered as rational if the benefit outweigh the cost

- Utility - Personal satisfaction gained from consumption.

For example, when you drink a soda after working out, the loss of thirst is considered to be a utiliy

- Risk aversion - Reluctance for taking chances.

Risk aversion is most commonly used by investors to avoid experiencing unnecessary loss

The right answer for the question that is being asked and shown above is that:

A. Financial planning. = > A decision-making method that compares costs and benefits.

B. Rational choice. = > A strategy to save for financial goals.

C. Risk aversion. = > Reluctance for taking chances.

D. Utility. = > Personal satisfaction gained from consumption.