Taking Charge of Your Financial Well-Being Unit Multiple Choice Test Bank 2.1.0.M1

TakeChargeofYourFinancialWell‐BeingUnitMultipleChoiceTestBank

Name

Date

MoneyinYourLifeQuestions

Directions:Circlethecorrectanswerforeachquestion.(1pointeach)

Class

1.WhichofthefollowingstatementsaboutourinteractionswithmoneyisNOTconsideredtobetrue?

a.Youareresponsibleforyourpresentselfandyourfutureself.

b.Yourpresentselfimpactsyourfutureself.

c.Youarebetteroffinacommunitythanbyyourself.

d.Investmentincreasesriskandreducesyourabilitytocopewithriskanduncertainty.

2.Carterwantstoparticipateinanactivitythatwillimprovehiswell‐being.Whichofthefollowingactivitieswouldcontributethemosttohiswell‐being?

a.Anactivityhisfriendsliketoparticipatein.

b.Anactivitythatdoesn’tcostmuchmoney.

c.Anactivitythathisteachersuggestedtohim.

d.Anactivitythatmakeshimlosetrackoftime.

3.Jennawantstoimproveherfinancialwell‐being.Whichofthefollowingwouldcontributethemosttoherfinancialwell‐being?

a.Takeapersonalfinanceclasstolearnhowtomanagehermoney.

b.Payhergrandmabackthemoneysheborrowedtotakeaschooltriplastyear.

c.Talktoherfriendsabouthowtomanagehermoneybetter.

d.Openanothercheckingaccounttohelpherorganizehermoney.

4.Jacobiswonderinghowhecanimprovehisintellectualwell‐being.Whichofthefollowingwouldcontributethemosttohisintellectualwell‐being?

a.Gotothegymthreetimesperweek.

b.Challengehimselfbytakingonanewprojectatwork.

c.Joinalocalserviceorganization.

d.Takeavacationfromwork.

5.Sylasisstudyingfinancialplanninginoneofhisclasses.Histeacherhasassignedhimtocreateatimelineofhisfinancialfuture.Whereshouldtheendofhisfinancialplanningtimelinebeset?

a.Whenhisfinancialgoalshavebeenestablished.

b.Whenhemoneymanagementplanhasestablishedhighwell‐being.

c.Whenheis70‐years‐old.

d.Never–itisanongoingprocess.

FinancialDecisionsQuestions

6.Ericawantsherclassprojecttoreflecthervalues.Whichitemswouldbebesttoinclude?

a.Thingsthatsheintendstoacquire,do,reachoraccomplishinthenearordistantfuture.

b.Thingsthatarenecessaryoressentialforlifeandsurvival.

c.Thingsthatreflectherfundamentalbeliefsaboutwhatisworthwhileandimportanttoher.

d.Thingsthatareunnecessarybutdesiredwhichincreasethequalityofherlife.

7.Whichofthefollowingislikelytohavetheleastinfluenceonanindividual’svalues?

a.Media

b.Family

c.Religiousaffiliations

d.Gradeaverage

8.Whichofthefollowingfactorsisnotinfluencedbyvalues?

a.Everythingisinfluencedbyvalues.

b.Anindividual’sdailydecisions.

c.Anindividual’slong‐termdecisions.

d.Anindividual’sfinancialdecisions.

9.Megan’smothersuggestedthatshewasexperiencingtheconsequencesofhertradeoffregardingadecisionshemadetopurchaseadressforprom.WhichsituationdoesMeganmostlikelyfindherselfinforhermothertohavemadethiscomment?

a.Meganhadshoppedatseveralstoreswhenshefoundthepromdressofherdreamsandpurchasedit.SheusedthemoneyshehadsavedforthepromdressPLUSmostofthemoneyshehadsavedforreplacingthetiresonhercar.NowthetiresneedreplacingandMeganisshortonthecashneededtodothejob.

b.Meganhadshoppedatseveralstoreswhenshefoundthepromdressofherdreams.Shecheckedonlineandfoundacouponthatenabledhertosave30%whenshereturnedtothestoretopurchasethedress.

c.Meganhadshoppedinseveralstoresandfoundsixpromdressesshelikedalot.Shebrought2friendsshoppingwithhertotellherwhichonelookedbestonher.Aftermuchdeliberation,shechosethedressthatwastheleastexpensiveofthe3shelikedbest.

d.Meganhadshoppedinthestorehermotherrecommendedforherpromdress.Shefoundtwodressesshelikedalot.Meganpurchasedtheonethatwasthemostcomfortableeventhoughitcost$28morethantheotherone.

10.Ianhasbeenshoppingforadifferentvehicleforthepastseveralmonths.Heneedssomethingreliableandwouldreallylikesomethingwithanicesoundsystem.Heandhisparentshavetalkedabouthowmuchhecanaffordandheplanstostaywithinthepriceguidelinesheandhisfamilyhaveset.Ianwasanalyzingtheopportunitycostofatrade‐offregardingwhichcartopurchase.Whichsituationbestrepresentswhathemightbethinkingthrough?

a.Ianiscomparingnewvehiclesattwocardealerships.Hewasabletofindnearlyidenticalcarsatnearlyidenticalprices.Onedealershipis20milesawayandtheotherdealershipis30milesaway.

b.Ianhasfoundtwodifferentcarsatalocaldealershipthatmeethisneeds.Thefirstcarhasa

bettersoundsystemthantheother.Thesecondcarhas20,000fewermilesonit.

c.Ianhasbeenshoppingforavehicleonline.Hefindssomethingthatwouldmeethisneedsbeingsoldbyanindividualnearhim.Hewouldbeabletopurchasethiscarforlessthanhewouldhavepaidforacomparablevehicleatacardealership.

d.Ian’solderbrotheristradingvehiclesandofferstosellIanhisusedvehicle.ThisvehiclewouldmeetIan’sneedsandheknewtheservicehistoryofthevehiclewasexcellent.

11.Whitneyisshoppingwithhermomandtheyaredecidingonclothingtopurchase.WhichscenarioBESTrepresentsthepurchaseofaNEED?

a.WhitneyisbeinginductedintotheNationalHonorSocietyatherhighschool.Studentshavebeendirectedto‘dressnice’.Whitneyhasadresssheworetoaweddinglastyearthatstillfitsbuthermomthinkssheneedsanewonetocelebratethisoccasion.

b.Whitneyhasbeenselectedtoattendanationalleadershipconferenceandhasbeeninstructed

thatshewillneedtodress‘professionally’foroneofthetours.Sheplanstowearhernewjeansandat‐shirtthathasthelogooftheleadershipconferenceonit.Hermotherthinkssheneedstopurchasesomethingmoreappropriate.

c.Whitneyhasseveralpairsofjeansinherclosetbutfoundsomethatreallyfitherwellatanexcellent pricewhensheandhermomwereshopping.Hermomagreesthatwiththesejeansatthisprice,theyneedtopurchaseapair.

d.WhitneywillbetravelingtoEuropewithayouthambassadorprogramthissummer.Shehasbeeninstructedtopackarainjacket.Therainjacketshealreadyownsdoesnothaveahoodsinceshealwaysusesanumbrellainrainysituations.Hermombelievessheneedstopurchaseahoodedrainjacketbecauseitwouldbemoreconvenient.

SettingFinancialGoalsQuestions

12.Kayleewillsaveherallowanceof$25permonthtopurchasea$150mp3playerinsixmonths.Thisisanexampleofwhattypeofgoal?

a.Short‐termgoal

b.Long‐termgoal

c.Mid‐termgoal

d.Thisisnotanexampleofagoal.

13.Oneelementofafinancialgoalismissingintheexamplebelow.Whichoneisit?“Iwillsave$150eachmonthtogoonavacationinoneyear.”

a.TimeBound

b.Specific

c.Attainable

d.Measurable

14.MarkandSusan,arecentlymarriedcouplewithfull‐timejobs,setagoalofputting$200insavingseverymonthtomakeadownpaymentonahomeinfiveyears.Whattypeofgoalhavetheyset?

a.Short‐term

b.Intermediate

c.Long‐term

d.Unrealistic

15.Amber’sacademicadviserhasaskedhertoset3academicgoalsforthissemester.ThesegoalsareMOSTLIKELYtobeaccomplishedif:

a.Amberdiscusseshergoalswithherparents.

b.Amberletsherfriendssethergoals.

c.Amberwriteshergoalsdown.

d.Amberthinksabouthergoalsweekly.