Nine Weeks Exam Review

Define impulse buying:

• Making thorough consumer decisions

• Purchasing clothes only

• Unplanned buying with little consideration

What type of insurance protects the contents of your apartment from loss?

• Renter's insurance

• Homeowner's insurance

• Liability insurance

Direct lending is

• getting financing directly from a bank or credit union.

• when the dealer takes your information and forwards it to other lenders for financing.

Which of the following should be considered when determining what city you will live in?

• Affordability

• Proximity to family and friends

• Employment opportunities

• All of the answers are true.

Inflation is

• the rising cost of goods and services over time

• the interest rate on a loan

• fee paid for borrowing money

The percentage of net income Kal Penn recommends you save

• 5%

• 10%

• 20%

• 50%

Saving

• Amount of income set aside for emergencies or short-term financial goals.

• Money put in assets thought to increase in value over time for long-term financial goals.

Which of the following are reasons to save?

• Emergencies

• Purchases

• Wealth building

• All of the answers are true.

Failure to read a rental agreement can cause you to pay unnecessary fees.

• True

• False

The percentage of net income Kal Penn recommends you save

• 5%

• 10%

• 20%

• 50%