1.
Tom's goal is to buy a $500 stereo system by saving $50 a week from each paycheck for the next ten months. Which phrase BEST decribes this goal?
Correct Answer
C. Specific and time-bound
Explanation
The goal of buying a $500 stereo system by saving $50 a week from each paycheck for the next ten months is specific because it clearly states the desired outcome and the amount to be saved each week. It is also time-bound as it specifies a specific timeframe of ten months to achieve the goal.
2.
Shannon always shops at Office Mall when she needs office/school supplies. This illustrates a decision made:
Correct Answer
B. From habit
Explanation
This answer suggests that Shannon's decision to shop at Office Mall for office/school supplies is based on habit, indicating that she has developed a routine or pattern of behavior in choosing this particular store. Rather than considering logical steps, impulsive choices, or weighing different options, Shannon consistently chooses Office Mall out of habit.
3.
Shelia realized that she needed to choose something to wear for her scholarship interview. Which steps in decision-making is this?
Correct Answer
A. Identify the decision to be made
Explanation
This step in decision-making is about recognizing and understanding the specific decision that needs to be made. In this scenario, Shelia recognizes that she needs to choose something to wear for her scholarship interview, which is the decision that needs to be made.
4.
Jeremy decided to contribute part of his earnings to the church fundraiser because, like his parents, he felt a strong commitment toward helping his church. Which type of factore MOST LiKELY infulences Heremy's decisions?
Correct Answer
A. Cultural
Explanation
Jeremy's decision to contribute part of his earnings to the church fundraiser is most likely influenced by cultural factors. This is because he mentions that, like his parents, he feels a strong commitment toward helping his church. Cultural factors refer to the beliefs, values, customs, and traditions that are shared by a particular group of people. In this case, Jeremy's cultural background and upbringing likely play a significant role in shaping his decision to contribute to the church fundraiser.
5.
Which is the BEST example of needs influencing financial decisions? Carol decided to use her birthday money to:
Correct Answer
C. Purchase a new winter coat because she'd outgrown her old one.
6.
Which is an example of saving?
Correct Answer
C. Ms. Dennis has $100 of his salary for each pay period depositied in an interest-bearing account.
Explanation
Ms. Dennis depositing $100 of her salary in an interest-bearing account is an example of saving because she is setting aside a portion of her income for future use. By depositing it in an interest-bearing account, she is also earning additional money through interest, which further demonstrates the concept of saving.
7.
Michelle charges $8 an hour when she babysits for neighbors. This is an example of which economic activity?
Correct Answer
B. Earning
Explanation
The correct answer is earning. This is because Michelle is receiving payment for her babysitting services, which is considered as earning income.
8.
Harold saves all extra income earned during peak seasons to give him money to fall back on during off-season months when work is more difficult to find. This illustrates which bebefit of savings?
Correct Answer
B. Increases financial security
Explanation
This scenario illustrates the benefit of savings in increasing financial security. By saving all extra income earned during peak seasons, Harold is creating a financial cushion that he can rely on during off-season months when work is more difficult to find. This ensures that he has a safety net and can cover his expenses even when his income is reduced. Saving money in this way provides a sense of security and stability in one's financial situation.
9.
Which is an example of repsonsible spending?
Correct Answer
A. Before buying her class ring, Beth compated costs and quality of rings from three sources.
Explanation
Beth comparing costs and quality of rings from three sources before buying her class ring demonstrates responsible spending. By comparing different options, she is making an informed decision based on value for money and ensuring that she is getting the best deal possible. This shows that she is being mindful of her expenses and making a responsible choice in terms of spending her money wisely.
10.
Financial Goals should be SMART: Tell me what this means
11.
What are values?