Financial Responsibility Answers

Personal finance skills have the most significant impact on an individual’s

What are the main purposes of a budget? Select three options.to record past income and spendingto take out a student loan from the bankto plan future income and spendingto apply for a mortgageto balance available resources and expenses

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

What is included in an individual’s personal assets? Select three options.number of dependentsmoneycareerpropertyinvestment

Emma lives on a tight budget. She saves money and also makes intelligent choices when spending it. Which statements describe Emma’s financial skills? Select three options.Emma is more prepared to meet her basic needs.Emma is better prepared to avoid financial setbacks.Emma is better able to avoid accumulating assets.Emma is more prepared to face emergencies.Emma is better able to avoid decision-making with her finances.

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?

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

Which of these is the best example of an asset?

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

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?

In American society, which of these is an example of a want?

In personal finance, one makes decisions based on needs vs. wants. What is considered a need?

What is included in an individual’s personal assets? Select three options.number of dependentsmoneycareerpropertyinvestment

When studying finance or economics, the cost of a decision is also known as a(n)

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Which results are more likely for someone without personal finance skills? Select three options.larger long-term credit or loan costsless preparation for emergenciesfewer utility expensessimple long-term investment strategiesincreased long-term challenges

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?

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?

What do financial planning skills ultimately enable an individual to do?

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

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

Which of these is the best example of an asset?

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

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?

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?

Emma lives on a tight budget. She saves money and also makes intelligent choices when spending it. Which statements describe Emma’s financial skills? Select three options.Emma is more prepared to meet her basic needs.Emma is better prepared to avoid financial setbacks.Emma is better able to avoid accumulating assets.Emma is more prepared to face emergencies.Emma is better able to avoid decision-making with her finances.

This chart shows Dan’s budget:

Which results are more likely for someone without personal finance skills? Select three options.larger long-term credit or loan costsless preparation for emergenciesfewer utility expensessimple long-term investment strategiesincreased long-term challenges