Chapter 1 Section Review

In​ general, the more education you​ have, the​ ________ your​ ________.

• higher; salary

• 
  ​lower; salary

• 
  ​lower; debt

• 
  ​higher; debt

The best time to start investing money to reach your financial goals is​ ________.

• in your twenties

• 
  in your thirties

• in your forties

• now

Which of the following supports the argument that many Americans pay too little attention to their personal​ finances?

• Bankruptcy involves a legal court taking over some or all of the finances of a person who is no longer able to pay his or her bills.

• About half of Americans working​ full-time report having to live paycheck to paycheck.

• Workers can expect the federal government and possibly their state and local governments to deduct taxes from each paycheck they earn.

• A higher level of education generally leads to a higher salary.

Bankruptcy is a legal process in which​ a(n) ________ takes over some of the finances of a person who is unable to pay his or her bills.

• bank

• investor

• financial advisor

• court

Which of the following is NOT a potential financial problem for which you should​ plan?

• Higher interest rates for savings accounts

• Anticipated problems with Social Security

• Uncertain economic future

• Increased health care costs

Understanding the opportunity costs of all your purchases is most likely to help you think about and change your​ ________.

• retirement plans

• study habits

• educational plans

• spending habits

​A(n) ___________ includes​ food, water,​ clothing, and shelter.

• luxury

• need

• expense

• want

​___________ decision-makers follow a​ step-by-step process to reach a decision.

• Rational

• Thoughtful

• Impulsive

• Persuasive

Good financial decisions lead to​ ____________.

• flexibility

• better paying jobs
  

• a happy marriage

• good health

If a financial investment​ doesn't work out in your​ favor, you should​ ___________.

• take responsibility for your actions

• assume that that the stock market is unstable

• blame the friend who told you about the investment

• invest more money while the price is down