Unit 1 Quiz 1 Personal Finance

Sometimes viewed as cheapskates, people with this personality avoid debt but might potentially miss long-term financial growth

• avoider

• investor

• saver

• shopper

What benefit will help an employee pay for a doctor's visit?

• disability insurance

• 401(k) plan

• flexible spending accound

• health insurance

A(n)___ is a bank, company, or person who lends money for a purchase

• lienholder

• asset

• investor

• employer

What is the biggest disadvantage to renting?

• The neighbors are close

• Homes are always in better neighborhoods

• Homeowners build equity; renters do not

• it is easier to negotiate a purchase than it is to negotiate a lease

Allen is about to sign a lease for an apartment at a rate of $1,300 per month. He will need to pay the first month's rent, the final month's rent, a $150 cleaning fee, and a $325 security fee. How much will his first payment be?

• $2070

• $3075

• $5060

• $1775

It is better to ___ a vehicle if you wish to change cars often.

• purchase

• lease

• rent

It is better to ___ a home if you have money for a down payment and want to stay in the same place.

• rent

• purchase

When purchasing a ___, you need to consider the blue book value and the cost of taxes, title, and license

• home

• piece of furniture

• home theater system

• used vehicle

The desire to project an image of affluence, pushing one's spending byong one's means is ___

• opportunity cost

• conspicuous consumption

• affluent buying

• debt management

A ___ is a loan from the bank to buy a house

• lease

• equity agreement

• mortgage