Answers26-27 Ignite Financial Literacy Personal Finance - EL3403Case Study: Personal Financial Planning

Case Study: Personal Financial Planning — Unit test Answers

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1
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Through the successful study of personal finance, an individual will be

b
better prepared to calculate financial risks
a
able to spend available assets.
f
faced with long-term challenges.
m
more likely to avoid high opportunity costs.
2
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What term is used to describe an individual's money and personal property?

A
budget
B
income
C
assets
D
finances
3

Which living expense needs to be included in the budget of someone renting an apartment?

A
property taxes
B
insurance
C
down payment
D
maintenance
4

In which column on a check register should the total current amount in the account be entered?

A
Deposit
B
Transaction
C
Balance
D
Debit
5

Quincy listed his assets and liabilities. CashRentStocksJewelryStudent LoanUtilitiesWhich are Quincy’s assets? Select three choices.

c
cash
r
rent
s
stocks
j
jewelry
s
student loan
6

increaselimitstopmaximize

A
increase
B
limit
C
stop
D
maximize
7

Marcus deposited his paycheck in the amount of $625.84. He’ll use the check register to record his transaction. What will be his new balance? Do not use commas in your answer. $

Question illustration
Answer not available
8

Which of these qualify as variable expenses? Choose three answers.clothing purchasesloan paymentmonthly groceriesapartment rentmedical bills

A
clothing purchases
B
loan payment
C
monthly groceries
D
apartment rent
E
medical bills
9

Emma has decided that she needs to assess the risk and return of buying an extended warranty for her new laptop for school. Which of these practical questions should she ask herself to assess the risk? Select three options.Will the warranty cover the cost of any physical damage?Should I buy a different model?Would it be better for me to buy a desktop computer?Is the cost of replacement less than the cost of the warranty?Is the laptop worth the extra expense of the warranty?

A
Will the warranty cover the cost of any physical damage?
B
Should I buy a different model?
C
Would it be better for me to buy a desktop computer?
D
Is the cost of replacement less than the cost of the warranty?
E
Is the laptop worth the extra expense of the warranty?
10

Aliyah made a payment in the amount of $47.93. She’ll use the check register to record her transaction. What will be her new balance? Do not use commas in your answer.$

Question illustration
Answer not available
11

Which best describes the purpose of recording past income and spending in a budget?

A
to know the historic cost of goods
B
to serve as the basis for future planning
C
to learn why having savings is important
D
to learn why expenditures are likely to increase
12

Fiona wrote a check to the veterinarian for $89.56. She’ll use the check register to record her transaction. What will be her new balance?

Question illustration
$
$2,458.94
$
$2,484.83
$
$2,549.55
$
$2,575.44
13

The best reason to record income at the top of a budget is

A
to easily add expenses to it.
B
to know how much money is available.
C
to avoid spending too much money.
D
to see that is is more important than expenses.
14

grossdiscretionarynet

A
gross
B
discretionary
C
net
15

Lauren is trying to find her net income. She used the statement and the steps shown.Step 1List all income, including tips and commissions, and list all expenses, including food, entertainment, and clothing.Step 2Total all the income. Then total all the expenses.Step 3Add the total of the income and the expenses.Which explains Lauren’s error?

Question illustration
L
Lauren made an error in step 1 because she should not include tips and commissions in her income.
L
Lauren made an error in step 1 because she should not include entertainment in her expenses.
L
Lauren made an error in step 2 because she does not need to total the expenses.
L
Lauren made an error in step 3 because she should have subtracted the expenses from the income.

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