Employment and Education Answers

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To assess the risk and return involved in a purchase decision, which practical questions should a potential buyer ask? Select three options.What can go wrong?What are my friends buying?How will it affect my social status?What is the likely return?Is the risk worth the return?

A
What can go wrong?
B
What are my friends buying?
C
How will it affect my social status?
D
What is the likely return?
E
Is the risk worth the return?
2
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What is included in an individual’s personal assets? Select three options.number of dependentsmoneycareerpropertyinvestment

A
number of dependents
B
money
C
career
D
property
E
investment
3

Amanda wants to buy a new car. What questions of financial responsibility should she ask herself before she makes the purchase? Select three options. Do I need this car or should I walk, bike, and take the bus to save money?Is this a reliable vehicle or will I have to make costly repairs?What will my friends think when I buy this car?Will I be able to afford the insurance, gas, maintenance of battery, oil, tires, and also repairs?Will this new car be fast and my favorite color?

A
Do I need this car or should I walk, bike, and take the bus to save money?
B
Is this a reliable vehicle or will I have to make costly repairs?
C
What will my friends think when I buy this car?
D
Will I be able to afford the insurance, gas, maintenance of battery, oil, tires, and also repairs?
E
Will this new car be fast and my favorite color?
4

Which would be most helpful when considering a large expenditure that might require repeating payments? Select three options.careful consideration of short-term goalsrecording the number of assets you currently owncreating a budget to consider future income and spendinglearning more about different kinds of accounts to manage moneylearning about opportunity cost

A
careful consideration of short-term goals
B
recording the number of assets you currently own
C
creating a budget to consider future income and spending
D
learning more about different kinds of accounts to manage money
E
learning about opportunity cost
5

Planning to finance higher education helps people prepare for their financial future because it teaches them about

A
loans and interest.
B
savings accounts.
C
filing taxes.
D
short-term goals.
6

How do short-term financial goals differ from long-term financial goals?

A
Short-term goals involve more planning than long-term goals.
B
Short-term goals are more affordable than long-term goals.
C
Short-term goals cost more than long-term goals in the long run.
D
Short-term goals are more immediate than long-term goals.
8

There are four steps in solving one’s personal financial challenges:1. considering opportunity costs2. assessing risks and returns 3. setting short- and long-term goals4. assessing needs and wantsWhich of these is the correct order of these steps?

A
2, 1, 3, 4
B
1, 2, 3, 4
C
4, 1, 2, 3
D
4, 2, 3, 1
9

_____ are items such as utilities, rent, and food—items that one can’t do without.

A
Needs
B
Wants
C
Risks
D
Assets

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