Finiancial Literacy Quiz Review

Values, peers, family, feelings, and habits can influence:

• Education

• Relationships

• Financial decisions

• None of the above

Scarcity is an economic principle stating that because of _______________________, an economic system cannot possibly produce all the goods and services that people want.

• Limited Resources

• Spending habits

• Low income

• Excessive debt

Sarah bought the latest jeans because her friend said she saw them in a magazine.

What influenced Sarah’s decision?

• Her budget

• Peer pressure

• Debt to income ratio

• Advertising

Encouraging customers to delay payment on a purchase to get a sale price is an example of:

• Advertising

• Economics

• Poor choices

• Sales strategy

A practical reason to make an expensive purchase would be:

• Peer pressure

• Need

• Impulse

• Emotions

Once I have ranked my priorities and am working towards them, is it a bad thing to change my mind?

• No. In fact your priorities are likely to change over time anyway, and you should prepare for that.

• Probably, because you will undermine your savings discipline and jeopardize your ability to achieve your goals.

• Not necessarily, but it does mean that most of what you have done to date will be in vain.

• Not necessarily, but it does mean that the money you have saved towards your goal will be wasted.

Which of the following is considered a need?

• A new car

• A place to sleep

• A steak dinner

• Business clothes

Which of the following is affected by one's values in life?

• Decisions

• Goals

• Personal life

• All of the above

What does SMART stand for when talking about goals?

• Skilled, Margins, Absolutely, Reasonable, Time-Bound

• Specific, Measurable, Attainable, Realistic, Time-Bound

• Specific, Manageable, Available, Realistic, Task

• Special, Measurable, Awesome, Ready, Teach

Mark and Susa, a recently married couple with full-time jobs, set a goal of putting $200 in savings every month to make a down payment on a home in five years. What type of goal have they set?

• Short- Term

• Intermediate

• Long-term

• Unrealistic