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Unit 3 quiz Personal and Family Finance

Terms in this set (15)

What is generally TRUE about earning an income?
Someone with greater skills in a particular area will often command a bigger income than those with less experience.
Alex bought a new television at Christmas. Now that same television costs $200 less than her purchase price. What does this example BEST demonstrate?
inflation risk
Which type of financial risk happens when the prices of things rise and fall?
inflation risk
Emil borrowed money so he would be able to afford to add a screened-in porch to the back of his house. When he applied for the loan, the rate on the loan was very low based given the current market trends. Over the following months, however, the market fluctuated a great deal, and suddenly he was faced with higher rates for the same loan. Which type of financial risk did Emil face?
interest rate risk
Sergio and Isabella are currently working full-time jobs. They are about to have their first child and are trying to decide if they are both going to keep working. What disadvantage will likely face if they choose a dual income option?
They will have a higher amount of childcare expenses.
Adalaide is considering switching cell phone plans. Though the new plan is slightly more each month, she'll be able to get a new phone sooner. When making this financial decision, what should Adalaide keep in mind?
Both small and large financial decisions can influence your financial health.
What percent of lottery winners end up with serious financial problems?
70
A family's resources are unlimited.
False
Lexi was on target in terms of her financial plan when her basement flooded due to an intense rainfall. Which type of financial risk derailed Lexi's plans?
personal risk
When using the process of shared decision-making, what strategy should families be sure to include?
discussion
You buy lunch every day of the week at a local café. What is MOST LIKELY true about this purchase?
This is a small purchase, but it adds up over time to affect your financial situation.
Sarah got a big raise at her job, so she bought herself a new truck. She knew it was a splurge, but she figured with her extra money coming in, it would be manageable. Unfortunately, her company had to cut her job the very next month, leaving Sarah with a new truck and no extra money to pay for it. What does this scenario BEST represent?
income risk
What is TRUE about education and its effect on income?
People who earn a college degree are likely to earn more than those who have a high school education.
Jeff and Casey, who are currently both working full-time jobs, are about to have their first child. They are trying to decide if they are both going to keep working. What benefit are they MOST likely to experience if they choose a dual income option?
They will have a greater amount of financial income.
Manuel wants to better manage his money and has started to seriously focus on financial planning. He has looked at his accounts and his other resources. What is the NEXT step Manuel should take in the financial planning process?
Identify his short-term and long-term financial goals.
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