Decision Making Unit 2 Questions

Select each of the PACED steps below.

* Define the problem. * List the alternatives. * Select the criteria. * Evaluate the alternatives. * Make a decision.

Select all the guidelines you should follow when writing your goals.

* Include a plan. * Make your goals measurable. * Break down long-term goals into short-term goals. * Memorize your goals. * Use detail.

Select the items from the following list that are included in financial literacy.

* applying for a credit card * opening a checking account

Select the items from this list that are examples of good financial habits.

* creating a budget no matter what your age * asking advice from employees at a bank or financial advisers * keeping good records

Which of the following is an example of financial irresponsibility?

spending your entire paycheck

Erin is in high school. She decides that she will set aside money to put in her savings account each week from the money she makes babysitting. This is a bad habit.

False

Liabilities are items you own that have value.

False

PACED is a process to find reliable information.

False

Your financial decisions will only affect yourself and nobody else.

False

Read the following two descriptions. Decide who has better financial habits and attitudes.

Hillary receives a few bills in the mail. She takes out a piece of paper and starts figuring out a plan to pay these bills.

Carol has decided that she wants to travel when she graduates high school. Which of the following would be a helpful goal for her?

I will work one extra shift per week and set aside $150 per paycheck to purchase a plane ticket to Italy.

A goal is a result that is desired.

True

A misconception is a misunderstanding.

True

Criteria are standards for evaluating something.

True

Decisions and goals are connected.

True

Reliable information is information you can trust with certainty.

True

Sam will finish high school this year. He does not think he needs any further education. This is a misconception.

True

To become financially responsible, you need to accept that you are accountable for your financial future.

True

When you are accountable, reliable and dependable you are acting responsibly.

True

You should review your goals about once a month.

True

A(n) ____ standards for evaluating something.

criteria

Which of the following is an example of financial responsibility?

having medical insurance

A(n) ____ is a misunderstanding; a mistaken thought or idea.

misconception

Financial literacy is knowledge about ____.

money

You do an Internet search and the results list includes the Web site www.FDIC.gov. This information is _____.

reliable

You receive a college investing kit in the mail from reputable investment company. This information is ____.

reliable

You read a newspaper article in the business section of a newspaper. The author is licensed financial advisor with a degree in finance. The article is about setting aside money for your kid's college tuition. This information is ____.

reliable but irrelevant

The third step in the PACED decision-making process is to ____.

select the criteria

You pick up a brochure at the grocery store. You cannot find any information about the people who created it. This information is ____.

unreliable

Grace would like to open a checking account. She needs to decide which bank is better for her. Grace should ____.

use the PACED decision-making process to help her decide