Answers Financial Literacy WMHS - Semester 1Spending

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Read the scenario.Brad has a steady job, earns a solid income, and plans to live in a nearby city for the long term. He is looking to purchase both a car and a place to live, and he is very interested in building up equity and credit.

buying both a car and a home

leasing both a car and home

buying a car and leasing a home

leasing a car and buying a home

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Why might people choose to rent a home rather than buy a home?

They have a lot of money saved for a down payment.

The property maintenance is the owner's responsibility.

The interest rates on equity are too high.

They have a long-term commitment to the area.

A monthly fixed rate mortgage payment

could change.

never changes.

increases annually.

decreases annually.

This chart shows the actual pricing history for three items.

game system

smartphone

DVD

It's most beneficial to buy all now.

Mr. and Mrs. Atoll are planning a party for 10 people and want to make sure they have enough soda for everyone to have two bottles. Which of the following makes the most economic sense?

20 bottles of soda at $1.50 each

4 six-packs of soda at $5.00 each

one case of 24 sodas at $18.50

two cases of 24 sodas at $18.50 each

Which option below is not a potential risk of purchasing a used car?

used cars can require repairs sooner

shorter lifespans of the engine and transmission

used cars can have lower initial cost

unexpected issues may arise

At what point does buying in bulk stop being a wise spending choice?

when the consumer has a lot of space to store bulk items

when costs rise too quickly due to demand

when bulk items are not on sale anymore

when the consumer buys more than is needed

Which statements apply to leasing a car? Check all that apply.

The car may be driven as much as needed.

Payments are generally higher than buying.

There are mileage restrictions on the car.

You must return the car after the lease ends.

There are penalties for ending the lease early.

You can sell the car to someone else after the lease ends.

When companies spend millions of dollars developing logos and slogans, or use celebrity endorsements to encourage consumers to buy particular products, this is called

false advertising.

undue influence.

product branding.

quality assurance.

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