Unit 1 Decision Making Test Review

What is personal finance primarily concerned with?

• Managing an individual's financial decision

• Managing a business's financial decision

• Managing a government’s budget

• Managing a nonprofit’s donations

How are financial values first influenced in an individual's life?

• By friends

• By school education

• By social media

• By family

What is the primary focus of personal finance?

• Increasing national GDP

• Making decisions that align with personal values and goals

• Following a universal method for managing finances

• Avoiding all forms of debt

Why is it important to understand your financial values?

• To follow a universal financial plan

• To avoid all financial risks

• To make financial decisions that align with your values and goals

• To maximize short-term gains

A person who enjoys using their money to purchase products and experiences without much hesitation, and with less concern for saving.

• Avoider

• Balancer

• Spender

• Balancer

The distinct patterns or tendencies in how individuals perceive, interact with, and manage their finances.

• Avoider

• Balancer

• Saver

• Money Personalities

Which money personality prioritizes accumulating money and seeks security and stability through regular saving habits?

• A Saver

• B Spender

• C Investor

• D Avoider

Which money personality enjoys growing their money by investing in stocks, bonds, real estate, or other investment types?

• A Saver

• B Spender

• C Investor

• D Balancer

Which money personality might struggle with the fear of making costly mistakes, leading to a desire to shy away financial matters?

• Avoider

• Saver

• Spender

• Investor

Why might an investor be willing to embrace higher levels of risk?

• They desire to grow their money through higher returns.

• They are interested in immediate gratification.

• They seek to accumulate savings for security.

• They prefer to avoid dealing with financial matters.