7086 Personal Finance

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7086 Personal Finance - Quiz

When you get that good job it comes with great pay too therefore giving rise to the need to better plan on how to use the money. Good personal finance opens an individual to investments that will increase their income. What can you recall from the topic on personal finance? Take up the quiz to find out.


Questions and Answers
  • 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?

    • A.

      Measurable, but not realistic

    • B.

      Realistic, but not measureable

    • C.

      Specific and time-bound

    • D.

      Specific, but not time0bound

    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.

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  • 2. 

    Shannon always shops at Office Mall when she needs office/school supplies.  This illustrates a decision made:

    • A.

      By following logical steps

    • B.

      From habit

    • C.

      On impulse

    • D.

      With options in mind

    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.

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  • 3. 

    Shelia realized that she needed to choose something to wear for her scholarship interview.  Which steps in decision-making is this?

    • A.

      Identify the decision to be made

    • B.

      Identify resources and gather information

    • C.

      Identify the options

    • D.

      Identify the pros and cons of each option

    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.

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  • 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?

    • A.

      Cultural

    • B.

      Economic

    • C.

      Legal

    • D.

      Media

    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.

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  • 5. 

    Which is the BEST example of needs influencing financial decisions?  Carol decided to use her birthday money to:

    • A.

      Buy a trendy new shirt int he style that all her friends were wearing

    • B.

      Give her money in support of a political candidate

    • C.

      Purchase a new winter coat because she'd outgrown her old one.

    • D.

      Take a trip to the mountains just for the fun of it.

    Correct Answer
    C. Purchase a new winter coat because she'd outgrown her old one.
  • 6. 

    Which is an example of saving?

    • A.

      Mr. Clark used hs credit card to order takeout food online.

    • B.

      Mrs. Eames receives extra money in her paycheck each October since she qualified for longevity.

    • C.

      Ms. Dennis has $100 of his salary for each pay period depositied in an interest-bearing account.

    • D.

      The bartons secured a loan to buy a two-storu townhome in the suburbs.

    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.

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  • 7. 

    Michelle charges $8 an hour when she babysits for neighbors.  This is an example of which economic activity?

    • A.

      Borrowing

    • B.

      Earning

    • C.

      Saving

    • D.

      Spending

    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.

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  • 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?

    • A.

      Can be used to earn additional income

    • B.

      Increases financial security

    • C.

      Produces a healthier economy

    • D.

      Provies growth opportunities for small businesses

    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.

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  • 9. 

    Which is an example of repsonsible spending?

    • A.

      Before buying her class ring, Beth compated costs and quality of rings from three sources.

    • B.

      Carolyn decided to save $10 a week during her junior year to help pay for her senior expenses.

    • C.

      Dee borrowed her mother's sweater only after her mother dois it would be fine.

    • D.

      Eli decided not to accept the offer of a part-time job because he needed more time to study.

    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.

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  • 10. 

    Financial Goals should be SMART:  Tell me what this means

  • 11. 

    What are values?

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