Set Yourself Up LAP Practice

What is the definition of credit?

• The arrangement by which businesses and individuals can purchase now and pay later

• A specific short- or long-term objective that is part of a financial plan

• Spending that is the result of an on-the-spot decision and not part of an overall spending plan

• Building wealth by using money to make money

What is the definition of financial goal?

• The arrangement by which businesses and individuals can purchase now and pay later

• A specific short- or long-term objective that is part of a financial plan

• Spending that is the result of an on-the-spot decision and not part of an overall spending plan

• Building wealth by using money to make money

What is the definition of impulsive spending?

• The arrangement by which businesses and individuals can purchase now and pay later

• A specific short- or long-term objective that is part of a financial plan

• Spending that is the result of an on-the-spot decision and not part of an overall spending plan

• Building wealth by using money to make money

What is the definition of investing?

• The arrangement by which businesses and individuals can purchase now and pay later

• A specific short- or long-term objective that is part of a financial plan

• Spending that is the result of an on-the-spot decision and not part of an overall spending plan

• Building wealth by using money to make money

What are needs?

• Basic purchases that are essential for survival

• A desire for something that is not required

• The benefit that is lost when you decide to choose one alternative over another

• The amount of time available

Which one of these definitions best describe 'Opportunity Costs'?

• The cost of making one decision over another.

• The cost for the opportunity to buy anything you want.

• The opportunity that will cost you loads of money.

Which of these is NOT an example of a need?

• Water
• Food
• watch
• Shelter

Time Horizon refers to . . . .

• the time a person wakes up, when the sun goes up

• The amount of time available, often applied to achieving financial goals

• a clock that helps with investing your money

• setting limits on the money amounts you can invesst

Which of the items below represent a want--check all that apply

• Halloween Candy

• New phone

• bottled water

• Sunglasses

Which explanation best describes the term credit?

• When a person gets something they want

• when person is honored for an accomplishment

• getting extra points on a test

• When business or individuals can purchase an item now and pay for it later