Case Study: Personal Financial Planning Answers

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21
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Joann has decided to purchase a new car. What should she do next according to the decision-making process?

A
Arrange for a car loan.
B
Choose a car color and style.
C
Visit a car dealership.
D
Research available cars for sale.
22
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Which budgeting questions should Sara ask when deciding whether to rent or buy a house? Check all that apply.

A
Do I have enough money saved for a down payment?
B
How much can I afford to pay each month?
C
What are the advantages of buying or renting?
D
How many rooms does the new home have?
E
Which real estate agent should I hire?
23

[BLANK]

A
net
B
gross
24

Buying a new car can create a financial challenge because

A
car insurance rates will decrease over time.
B
car payments must become part of the budget.
C
car insurance rates will be higher than renter’s insurance.
D
car payments are likely to exceed available income.
25

What is an advantage of renting a place to live?

A
lower up-front costs
B
payments change from month to month
C
low down payment
D
increasing equity over time
26

[BLANK]

A
budget
B
transportation
C
utilities
D
insurance
27

What is the first step in the decision-making process?

A
Take action.
B
Get information.
C
Form a decision.
D
Identify the choices.
29

What is the first step in the decision-making process?

A
Take action.
B
Get information.
C
Form a decision.
D
Identify the choices.
30

Daniel wants to buy a laptop computer, and he has $300 in savings. He can purchase a new computer for $279 or a refurbished [repaired or renovated] computer for $100. What should Daniel do next?

A
Evaluate his decision to buy a computer.
B
Revise his budget to allow for a new computer.
C
Obtain a credit card to pay for a refurbished computer.
D
Review the pros and cons of the different available computers.
31

To revise a monthly budget, changes in which categories might need to be addressed? Check all that apply.

A
income
B
amount budgeted
C
equity
D
expenses
E
housing advantages
32

When making a decision about housing, the first step should be

A
visiting different housing locations.
B
gathering information on available housing.
C
analyzing the availability of housing loans.
D
comparing the cost of housing alternatives.
33

The chart compares transportation options.

Question illustration
A
the up-front cost
B
the monthly payments
C
the length of payments
D
the cost of insurance and gas
34

When making a decision about housing, the first step should be

A
visiting different housing locations.
B
gathering information on available housing.
C
analyzing the availability of housing loans.
D
comparing the cost of housing alternatives.
35

Which budgeting questions should Sara ask when deciding whether to rent or buy a house? Check all that apply.Do I have enough money saved for a down payment?How much can I afford to pay each month?What are the advantages of buying or renting?How many rooms does the new home have?Which real estate agent should I hire?

A
Do I have enough money saved for a down payment?
B
How much can I afford to pay each month?
C
What are the advantages of buying or renting?
D
How many rooms does the new home have?
E
Which real estate agent should I hire?
38

Which is the most important consideration when deciding to purchase or lease a vehicle?

A
all current monthly expenditures
B
the amount of cash saved
C
the cost of gas and insurance
D
all monthly car payments

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