Financial Decision Making Factors

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

Definition: the ability to hold back one’s actions

• Restraint

• Frugal

• Peer Pressure

• Tithe

Definition: an unplanned, spontaneous purchase

• Sale

• Self-control

• Trade-off

• Impulse Buying

Peer pressure is also known as __________.

• Civic consciousness

• Work ethic

• The bandwagon effect

• Restraint

The fact Americans make different financial decisions than Europeans is due to

which of the following?

• Social influence

• Work ethic

• Emotional influence

• Cultural influence

True or False: Trade-off is an exchange of one thing for another, especially giving up one benefit or advantage for another which is more desirable

• True

• False

True or False: Opportunity cost is the cost of an item in terms of other opportunities which were given up.

• True

• False

The awareness of one’s surrounding environment and the impact personal

decisions can have on it is known as which of the following?

• Civic consciousness

• Work ethic

• The bandwagon effect

• Restraint

True or False: Restraint is to give or pay a tax; usually 10 percent

• True

• False

Definition: clear, identifiable objective you plan to accomplish

• Goal

• Trade-off

• Tithe

• Peer Pressure