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Financial Decision-Making Quiz

Total questions: 3

Worksheet time: 2mins

Name
Class
Date
1.

You decide to get a loan for a new house. You choose to lock in your loan with an interest rate of 5.25 percent. You buy your house and are happy with the purchase. Five months later, the interest rates drop to 3.5 percent. You realize that you could have waited to get a better deal. What does this scenario BEST demonstrate?

a)

personal risks

b)

income risks

c)

interest rate risks

d)

inflation risks

2.

Years ago, your grandfather gave money to a friend who wanted to start a grocery store. As the grocery store earns profits, this friend gives a share of the profits back to your grandfather. Your grandfather has nothing to do with the grocery store, but he still earns money as a silent partner in the business. What type of income is this known as?

a)

passive income

b)

earned income

c)

investment income

d)

inheritance Income

3.

Families should avoid using shared decision-making at all times.

a)

True

b)

False