AnswersOR-Grade 8 US HistoryMaking Spending Decisions

Making Spending Decisions — Unit test Answers

15 verified answers
1
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best

w
writing them down on one list and keeping them in a safe place at home
t
typing them into her smartphone so they are easily accessible
t
typing them into an e-mail and sending it to her personal e-mail account
w
writing them down on one list and keeping them in her wallet
2
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What does purchasing insurance for a business reveal about the business owner’s attitude toward financial risk?

A
It shows that the owner expects financial risk and is eliminating it by making an insurance company liable.
B
It shows that the owner acknowledges the financial risks and is willing to pay every month to transfer the risk to an insurance company.
C
It shows that the owner is willing to share ownership of the business to reduce financial risk.
D
It shows that the owner is willing to budget for short-term financial risks to avoid long-term risks.
3

The Smith family is deciding whether to buy a new washer or a gym membership. Which is the best example of a wise family spending decision?

A
The father sees a sale on washers and decides to buy one on the spot.
B
The family meets to go over the budget and decide which item to buy.
C
The family meets to discuss desires and decides to finance both items.
D
The mother signs up for the gym and decides to get into shape.
4

Who is following the law when it comes to protecting investors’ funds?

A
a financial planner who pitches a risk-free stock
B
a mutual fund advisor who informs investors about risks
C
a broker who sells CDs from nonfinancial institutions
D
a realtor who advertises a can’t-miss land buy
5

What is the definition of liability?

A
the amount a consumer must pay after an incident before the insurance company starts paying
B
the monthly amount paid for insurance
C
intentionally destroying something in order to collect insurance
D
a responsibility to pay for or fix a problem
6

At what point should consumers stop researching a product?

w
when the research costs more than the potential savings
w
when they want to make an immediate purchase
w
when the government does the research for them
w
when they know they have waited long enough to buy
7

Federal and state governments protect victims of identity theft by

A
creating laws that impose fines and jail time for identity thieves.
B
passing laws requiring financial institutions to reimburse victims.
C
forcing credit-reporting agencies to notify victims of suspicious activity.
D
requiring people to do a better job protecting their personal information.
8

Interest on an investment is considered

A
financing.
B
a fee.
C
a penalty.
D
profit
9

Bankruptcy is considered a last resort because it stays on someone’s record for

A
one to four years.
B
four to seven years.
C
seven to ten years.
D
eleven to fourteen years.
10

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.
11

locationtuitionindependenceproductivity

A
location
B
tuition
C
independence
D
productivity
12

best

I
It requires the use of savings.
I
It requires repayment with interest.
I
It involves completing an application.
I
It is based on need or achievement.
13

One advantage to buying a CD is that it

A
can be purchased for different amounts.
B
is high risk but comes with great rewards.
C
can be used for long-term retirement.
D
is high risk but backed by the government.
14

How easily an investment can be exchanged for cash is known as

d
diversification.
r
risk.
l
liquidity.
r
return.
15

These lists outline the details of two jobs.

Question illustration
f
family needs
j
job location
p
personal life
a
annual wages

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