Pretest

Question 1

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

Revolt · Accepted Answer

Short-term goals are more immediate than long-term goals.

Question 2

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

Revolt · Accepted Answer

Long-term goals require more money than short-term goals.

Question 3

Which results are more likely for someone without personal finance skills? Choose three correct answers.

Revolt · Accepted Answer

larger long-term credit or loan costs; less preparation for emergencies; increased long-term challenges

Question 4

To assess the risk and return involved in a purchase decision, which practical questions should a potential buyer ask? Choose three correct answers.

Revolt · Accepted Answer

What is the likely return?; Is the risk worth the return?; What can go wrong?

Question 5

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

Revolt · Accepted Answer

something one cannot live without

Question 6

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

Revolt · Accepted Answer

opportunity cost.

Question 7

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

Revolt · Accepted Answer

loans and interest.

Question 8

Through the successful study of personal finance, an individual will be

Revolt · Accepted Answer

better prepared to calculate financial risks

Question 9

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

Revolt · Accepted Answer

video games

Pretest Answers