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Introduction to Financial Planning

Rachit is a s...

Question

Rachit is a student and is able to do all things like shopping and eating out, but he does not earn anything. How is he able to enjoy everything?

A

He is dependent on his parents.

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B

He is an employer.

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C

He is an employee.

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D

He gets extra income from various sources.

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Solution

The correct option is A He is dependent on his parents.
Rachit is dependent on his parents' income for his needs. His parents earn an income. They may either be employees or employers in some capacity. They provide Rachit with food, shelter, and clothing with the income that they earn from their jobs.

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