Quiz #2: Savings,Insurance and Risk Management

What is a suggested way to save money on purchases?

• Buying the most expensive brands.

• Buying the least expensive brands.

• Buying the most popular brands.

• Buying the most advertised brands.

What is one question you should ask yourself when trying to cut back on spending?

• What can you afford to cut back on and still live a comfortable lifestyle?

• What can you afford to buy more of?

• What can you afford to spend more on?

• What can you afford to save less of?

What is one way to go cheaper on purchases?

• Swapping brand names with generic options.

• Buying more expensive brands.

• Buying the same brands.

• Avoiding generic options.

What is the main financial goal for the student in Group 1?

• To buy a concert ticket

• To save money for a car

• To pay for textbooks

• To buy back-to-school clothes

How much does the student in Group 5 want to save for future opportunities?

• $300

• $400

• $500

• $600

How much money is needed for books for college according to the scenario?

• $300

• $400

• $500

• $600

What is the benefit of buying cheaper things over the summer?

• It allows you to buy more luxury items.

• It helps you save an extra few dollars.

• It gives you access to exclusive deals.

• It helps you avoid paying sales tax.

What is the scenario number mentioned in the document?

• #1

• #2

• #3

• #4

Using the compound interest formula, what does 'A' represent?

• Principal amount

• Annual rate of interest

• Amount of money accumulated after n years, including interest

• Number of times the interest is compounded per year

What is insurance?

• A type of investment

• A form of protection against financial loss

• A method of saving money

• A way to earn interest