Smart Decisions with Math
Suppose you have $100 in a savings account earning 2 percent interest a year. After five years, how much would you have?
$110
Which of the following best describes relative value?
(a) The price at which an item is bought or sold for
(b) The value an individual gives an item for personal reasons
(c) An item’s worth in comparison to something else
(d) The extent to which a person wants or needs an item
(c) An item’s worth in comparison to something else
Living wage:
(a) The amount of money a person must earn to live above the poverty line
(b) A wage that supports an average standard of living
(c) The median income across the country
(d) The wages a person needs to pay for housing in his state
(e) The annual salary necessary to disqualify a person from receiving welfare benefits
(b) A wage that supports an average standard of living
What is the key to long-term budgeting success?
(a) Establishing the budgeting habit first, then adjust the spending habits
(b) Monitoring spending and adjust it as appropriate
(c) Adjusting spending habits then set a budget based on the adjustments
(d) Making dramatic changes
(a) Establishing the budgeting habit first, then adjust the spending habits
Emily decided as a freshman that she wanted to go on a really cool trip after graduation. She invested her savings in her dad's mutual fun. Her initial deposit was $600, and she has earned 7.5% interest over the last four years. What amount of interest did Emily earn while in high school?
$180
Best describes intrinsic value:
(a) the price at which an item is bought or sold
(b) the value an individual gives an item for personal reasons
(c) An item's worth in comparison to something else
(d) The extent to which a person wants or needs an item
(b) the value an individual gives an item for personal reasons
Which of the following best describes the difference between comfort and material goods?
(a) Material goods are items a person doesn't have but really wants, and comfort relates to her level of physical and mental health
(b) Material goods are objects that can be owned, whereas comfort might be the luxury versions or features of those objects.
(c) Comfort is purchasing power due to money and fame, whereas material goods are the specific things that can be bought with that money
(d) Comfort is the ability to pay for wanted items, while material goods are things necessary for survival
(b) Material goods are objects that can be owned, whereas comfort might be the luxury versions or features of those objects.
Fixed expense:
(a) Prescription medication
(b) Groceries
(c) Gasoline
(d) Entertainment
(a) Prescription medication
Grant works as a salesperson at a seasonal market. During the Christmas season, he gets a 15% commission on every tree he sells. If he sold 12 trees today, with an average sale price of $35 per tree, what amount of commission will he make?
$63
True or false: Financial decisions are strictly about numbers and never have an emotional component.
False
Which of the following is a factor the United Nations uses to determine a country’s standard of living?
(a) Male to female ratio
(b) Expected education level
(c) Average weight
(d) Climate
(b) Expected education level
True or False: Gradual change is typically more effective in the long run compared to dramatic changes.
True
Skylar wants to buy jeans and has found multiple sales at the local mall. She wants the best deal, so she always buys from the store with the biggest percentage discount even if she ends up spending more money. Which of the following would Skylar mot likely buy on the offered percentage discount?
(a) $25 on sale for $17
(b) $20 on sale for $16
(c) $50 on sale for $42.50
(d) $60 on sale for $45
$25 on sale for $17
An item’s intrinsic value can increase its monetary value, but an item’s monetary value cannot increase its intrinsic value.
False
What percentage of the world (excluding the United States) lives on less than $50 a day?
(a) 84%
(b) 62%
(c) 93%
(d) 45%
(e) 71%
(c) 93%
(a) Discretionary spending is the same as net income
(b) Discretionary spending refers to the money that must be paid
(c) Discretionary spending refers to the money available after taxes are removed and any mandatory obligations have been covered
(d) Discretionary spending refers to the money spent at a person's own discretion
(c) Discretionary spending refers to the money available after taxes are removed and any mandatory obligations have been covered