Finance Decision Making Factors Review

Select the correct answer from the choices provided in the underlined sections. Decision making / Finance describes the ways in which people and organizations raise, allocate and use monetary resources.

• Decision making

• Finance

Which of the following defines frugal?

• An unplanned, spontaneous purchase

• Not being wasteful

• Awareness of one’s environment

• The ability to hold back one’s actions

Emotions could cause an individual to make a purchase they might not otherwise make.

• True

• False

Peer pressure is also known as __________.

• Civic consciousness

• Work ethic

• The bandwagon effect

• Restraint

Gemma wants to go miniature golfing, to the movies, and to the mall with her friends. However, she only has enough money to do two of the activities. Gemma decides to go miniature golfing and to the mall with friends. Which of the following is the opportunity cost in this scenario?

• Miniature golfing

• Going to the mall

• Going to the movies

• All responses are the opportunity cost

A celebrity endorsement of a product would be an example of __________.

• Cultural influence

• Social influence

• Opportunistic influence

• Ethical influence

Select the correct answer from the choices provided in the underlined sections. Impulse buying / Peer pressure is a(n) unplanned purchase which disrupts the decision making process by switching from a rational plan of purchase to an irrational moment of self-gratification.

• Impulse buying

• Peer pressure

Delayed payments can often help an individual save money in the long run.

• True

• False

Select all of the following which are part of a SMART goal.

• Achievable

• Measurable

• Realistic

• Simple

• Tactical

Which of the following is the term for a set of values based on the moral virtues of hard work and perseverance?

• Civic consciousness

• Work ethic

• The bandwagon effect

• Restraint