Financial Skills for Smart Living: Pre-Test

Noah is planning his monthly budget for fuel expenses. He considers three factors to calculate the cost. Which of the following factors doesn’t make a difference?

• Miles driven

• Size of gas tank

• Miles per gallon (MPG)

• Cost of fuel

Repairs and upkeep on a home can usually range from (a)   per year in costs.

• Low

• Moderate

• High

• $1,060

• $1,620

• $2,520

• $2,160

Isla, a former military member, is looking to buy a home and wants to receive a low interest rate and minimal down payment requirement. What type of mortgage might she use?

• Reverse mortgage

• VA mortgage

• ARM mortgage

• Balloon mortgage

(a)   is the material basis of well-being, which is reflected in a person’s consumption level.

• Goods

• Services

• Wealth

• Income

Abigail is focusing on getting plenty of rest, maintaining her relationships with friends and family, and enjoying her freedom. These aspects are all examples of

• A person’s standard of living.

• A person’s average propensity to consume.

• A person’s well-being.

• A person’s utility.

David spends a certain percentage of his income on daily expenses and leisure activities, rather than saving it. This percentage is known as _______.

• propensity to consume

• marginal utility

• opportunity cost

• inflation rate

Mason is a young professional who finds himself living paycheck to paycheck. Which statement best describes his situation?

• Needing his full paycheck to meet his minimum monthly living expenses, so that there's no extra money if a problem arises.

• A successful budgeting strategy where he allocates every penny of his paycheck to a perfectly constructed budget, so he never goes over.

• Adding one paycheck to the next paycheck, so that his savings account balance is always increasing.

• Using the money from his paychecks to meet some of his monthly expenses, while allowing investment income to cover the rest of his bills.

Henry is setting his goals for the upcoming project. He wants to ensure that each goal is meaningful and aligns with the overall objectives. In the context of SMART Goals, what does the "R" stand for?

• Relevant

• Rational

• Remember

• Round

Mia is setting her personal development goals for the year. She wants to ensure her goals are well-defined and effective. The SMART GOALS is an acronym for setting quality goals. The S ________ stands for:

• Smart

• Successful

• Standard

• Specific