Unit 5 PF Review #1

What is the main goal of applying a rational decision-making model?

• To make quick decisions

• To evaluate costs and benefits

• To avoid making decisions

• To follow trends

When comparing employment opportunities, what is one factor to consider?

• Distance to the nearest park

• Stability

• Color of the office walls

• Size of the parking lot

What is the purpose of budgeting income?

• To increase spending

• To manage limited resources

• To avoid taxes

• To save for retirement

What type of income is earned by holding shares of stock in a company that pays shareholders when profits are earned?

• Rental Income

• Dividend Income

• Interest Income

• Wage Income

A variable expense is a cost that changes. Which of the following are examples of variable expenses?

• Groceries and utilities

• Rent and insurance

• A vacation and a new car

• Discounts and sales

An unplanned expense is a cost that is unexpected. Which of the following are examples of unplanned expenses?

• Medical bills and repairs

• A vacation and a new car

• Rent and insurance

• Groceries and utilities

Why are overdraft fees functional?

• They provide extra funds

• They prevent account closure

• They encourage careful spending

• They increase interest rates

What must people believe about money for money to have value?

• It is backed by gold

• It is universally accepted

• It is a collectible item

• It is a rare commodity

What services do banks offer?

• Only loan services

• Only savings accounts

• A variety of financial services including loans, savings, and checking accounts

• Only investment services

Parents can use 529 Account funds for __________, private school, or any other approved educational expenses.

• College

• Vacation

• Car purchase

• Home renovation