Precision Exam: Standard 2

Why should we determine things that are needs and thing that are wants?

• It can help to make better decisions and prioritize our spending.

• So you can buy anything

• To stop spending money

 Is it important to know your short and long term goals?

• Yes, determining long and short term goals helps visualize and shape your future.

• No, setting goals doesn't help you budget.

 Select all types of finance risk?

• income risk

• expenditure risk

• credit/debt risk

• Donating money

Why is evaluating your current financial position important?

• to be able to determine what adjustments we need to make in our lives—from saving to spending to earning.

• To know what you have

What are financial statements used for?

•  The financial statements are used by investors, market analysts, and creditors to evaluate a company's financial health and earnings potential.

• To watch your money

Select all the examples of income

• wages

• commissions

• dividends

• gifts

• capital gain

Why are consumer protection laws important?

•  It helps protect consumers from defective products, dangerous goods and services

• Everyone should know their laws

• They stop you from buying things

• It protects companies from bad customers

 What are examples of consumer protection laws?

• False advertising

• overspending

• buying luxury products

• customer returns

 Do consumers protection law prevent fraud?

• Yes

• No

Which acts protect consumers from fraud?

• Truth in lending act

• Fair credit reporting act

Answer explanation

Truth in lending act because this acts protect consumer from fraud and scams