Global: Making Informed Financial Decisions Quiz

1 point(s)

Which of the following best describes making informed financial decisions?

Gathering all relevant information and comparing options before making a choice

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Acting on impulse without considering the consequences

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Focusing only on the emotional appeal of an advertisement

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Spending money as quickly as possible without a plan

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1 point(s)

Which step is essential before making a large purchase, like a car?

Considering ongoing maintenance, fuel, insurance, and financing costs

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Ignoring additional expenses and focusing only on the purchase price

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Basing the decision solely on an advertisement’s claims

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Waiting for a price increase before deciding

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1 point(s)

Financial responsibility involves:

Setting priorities, avoiding unnecessary debt, and practicing disciplined saving

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Spending without considering consequences

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Taking on debt for non-essential luxuries without a plan

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Ignoring emergency funds and long-term goals

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1 point(s)

Which of the following is considered “good debt”?

High-interest credit card debt used for a shopping spree

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A payday loan with extremely high fees

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A mortgage that helps build equity over time

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An impulsive purchase financed with a personal loan

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1 point(s)

What is the main difference between short-term and long-term financial goals?

Short-term goals require easily accessible funds and are achieved quickly, while long-term goals often involve investments and take more time to reach

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Short-term goals always cost more money than long-term goals

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Long-term goals are completed in a few weeks, while short-term goals take decades

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There is no difference, both short-term and long-term goals are the same

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1 point(s)

Paying off high-interest debt first can reduce the total cost of borrowing.

True

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False

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1 point(s)

Setting financial priorities includes allocating funds to savings and emergency funds before spending on non-essential items.

True

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False

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3 point(s)

Please match the word with its definition.

Sort elements

The value of the next best alternative given up when making a choice
Debt that can increase long-term financial stability, such as a mortgage
High-interest debt that provides no long-term benefit, like credit card debt for unnecessary purchases

Opportunity Cost

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Good Debt

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Bad Debt

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3 point(s)

Please match the word with its definition.

Sort elements

A financial objective achievable in under 3 months (e.g., building an emergency fund)
A financial objective achievable in 3-12 months (e.g., paying off credit card debt)
A financial objective that takes more than a year to achieve (e.g., saving for retirement)

Short-Term Goal

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Intermediate Goal

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Long-Term Goal

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1 point(s)

Arrange these steps in making an informed financial decision from first (#1) to last (#4). Available choices: Identify your goal / Gather and analyze information / Weigh risks and rewards / Make the final choice

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1 point(s)

Arrange these financial responsibilities from highest priority (#1) to lower priority (#4). Available choices: Building an emergency fund / Paying for essential expenses like housing and food / Saving for long-term goals like retirement / Spending on non-essentials (luxuries)

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1 point(s)

What is one financial principle you learned that you believe will help you make better long-term financial decisions, and why?

This response will be reviewed and graded after submission.

Global: Making Informed Financial Decisions Quiz