AnswersMO-Personal FinanceCase Study: Personal Financial Planning

Case Study: Personal Financial Planning Answers

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1
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What is the first step in the decision-making process?

A
Take action.
B
Get information.
C
Form a decision.
D
Identify the choices.
2
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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.
4

What is the most acceptable and easy way to revise a budget to allow for the purchase of a new couch?

A
Cancel renters' insurance.
B
Skip a car payment for a few months.
C
Advertise for a roommate to reduce rent.
D
Cook dinners at home instead of going out to eat.
5

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?
6

[BLANK]

A
net
B
gross
8

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.
9

[BLANK]

A
budget
B
transportation
C
utilities
D
insurance
10

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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