FN 101 - UAB
According to the text, what are the main reasons Americans have financial problems? - Lack of clear personal financial guidance by the federal bank. - Advertising efforts and availability of goods encourage overspending. - Poor planning and weak management of money habits. - Employers do not pay enough to their employees.
- Advertising efforts and availability of goods encourage overspending. - Poor planning and weak management of money habits.
Rachel has been shopping for a new refrigerator over the course of three days and has been putting all her household chores on hold. She finds a refrigerator that fits her needs and purchases it. This is an example of: - personal opportunity costs. - financial opportunity costs. - obsessive-compulsive behavior. - extreme comparison shopping.
- personal opportunity costs.
When planning your financial goals, what role does the economy play?
Daily economic transactions facilitate financial planning activities, which affect personal finance decisions.
Which of the following is true? - The consumer price index is based on items calculated in a predetermined manner. - Due to inflation, the value of an asset purchased from borrowings decreases in value causing a loss to the borrower of money. - A reduced money supply causes lower interest rates.
The consumer price index is based on items calculated in a predetermined manner.
The measure of the average change in the prices urban consumers pay for a fixed "basket" of goods and services is called the: Multiple choice question.
consumer price index
"Hidden" inflation exists when:
the cost of necessities rise at a higher rate than nonessential items
