Fin Lit Ch 1 Quiz

Calculating the opportunity cost of a purchase is a good way to consider the ________ of the purchase.

Before you decide what level of education you want to pursue, which of the following is most important to do?

• Consider different universities and the courses offered at each

• Consider different career options and the level of education required for each

• Consider the cost of moving to attend college in another state

• Consider your need for a rainy-day fund

Which of the following is NOT a part of personal financial planning?

• Asset management

• Financial goals

• Investment plans

• Time management

When is the best time to start saving for long-term financial goals?

• When you have a family of your own

• When you are in your forties and earning more money

• When you are young and have fewer financial obligations

• After you have finished college

Adults with which of the following levels of education make, on average, the highest annual income?

• Master's degree

• High school diploma

• Associate degree

• Bachelor's degree

What does the opportunity cost of a purchase tell you?

• The cost of the purchase plus the cost of sales tax

• The cost of the purchase plus the cost of not doing or purchasing something else

• The cost of the purchase plus the interest paid on credit for the purchase

• The cost of the purchase minus the loss of interest on savings for the amount of the purchase

Raising a child, including sending him or her to college, can be expected to cost _______ over the child's life from birth to age 22.

• less than $100,000

• more than $400,000

• less than $200,000

• more than $250,000

Which of the following is a long-term financial goal?

• Creating an emergency fund

• Buying a cell phone

• Taking a vacation

• Buying a house

Which of the following provides the most accurate definition of personal finance?

• All of the financial issues involved in borrowing money

• All of the financial issues involved in saving money

• All of the financial issues that can affect an individual

• All of the financial issues involved in spending within a budget

Tyra has to decide whether to work an extra shift at her job at the movie theater or take the evening off and go to a concert with her friends. To make her decision, Tyra adds up what she could make by working the extra shift and what she will spend at the concert. Tyra is calculating her ________.

• credit

• assets

• opportunity cost

• financial goals