Personal Finance Unit 8 GOV

How does the federal government protect consumers when they purchase food?

• It requires food labels to provide nutritional information.

• It requires all food ingredients to be grown organically.

• It requires labels to list the energy used to produce food.

• It requires food to be delivered in reusable packaging.

Mekhi and Gael have started a company to sell their bakery creations. They have created a budget to help them keep track of their money.

Budgeting might help Mekhi and Gael realize

• how other bakery companies manage their money.

• how much money their customers will spend.

• how their products compare to products from other local bakeries.

• how much money they have left to spend on better ingredients.

Which kind of loan involves compound interest calculations?

• mortgage

• credit card

• personal loan

• car loan

What might motivate someone to make an investment with a high rate of risk?

• the possibility of higher returns

• to have money for emergencies

• a desire to be cautious with money

• the need for liquidity in the investment

Avonte invested in one stock for a tech company 10 years ago and has not touched the investment. The investment is worth less today than it was 5 years ago. Why is that possible?

• The tech company has taken additional money from the investment for their expenses.

• The stock market is unpredictable, with some stocks gaining and losing value quickly.

• The tech company has grown and has less need for the initial investment.

• The stock market charges penalties if investors keep their money in it for too long.

Alina finds a website that sells her favorite jeans for a fraction of the price she pays in stores. She is tempted to buy several pairs. Her sister sees her looking at the website and comments that the jeans might be fakes because the price is so low.

What is the best way for Alina to protect herself?

• She can research the company or site selling the jeans.

• She can order the jeans and send them back if it is a scam.

• She can accept that the jeans are fakes and order them anyway.

• She can ask friends if they think the site is selling fake jeans.

What is one advantage of trade school?

• free tuition

• military experience

• hands-on training

• general-education courses

Riley spends $300 on her credit card. She pays the minimum payment, $25, and expects that her balance will then be $275. She’s surprised that it’s higher even though she hasn’t used the card again. What happened?

• Interest accumulated on the balance because it was not paid in full.

• Her minimum payment was used as a fee, not as the payment.

• She was charged a penalty for not paying more than the minimum.

• The lender changed the amount of credit she’s allowed to receive.

Which best describes the connection between education and money?

• Only college graduates receive high-paying jobs.

• Certificates and degrees increase earning potential.

• People with low incomes cannot afford to go to college.

• High school graduates earn more than any other group.

What discourages people from withdrawing money from a long-term investment as soon as it starts making money?

• Withdrawing money early from a long-term investment is illegal.

• Most long-term investments have less liquidity than other kinds of investments.

• By the time a long-term investment starts making money, it is close to expiration.

• Most long-term investments have more liquidity than other kinds of investments.