What is opportunity cost?

the thing you miss out on when you make a decision

a limitation or shortage of something

when you exchange a benefit you have to gain another possible benefit

What is financial literacy?

understanding how to properly manage money

to create a plan that shows how you will spend and save your money

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Financial Literacy Coaching WriteUp Quiz

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Questions 15

Answers

1
What is opportunity cost?
how much it cost you to pay for something
what you gain when you make a decision
the thing you miss out on when you make a decision
how much money you lost when you paid for something
2
Savings are useful even when there are no emergencies.
True
False
3
Wants are very necessary for survival.
False
True
4
What is scarcity?
an equal amount of two things
a limitation or shortage of something
the study of how resources are destroyed
a surplus or great amount of something
5
In the 50/30/20 rule, 30 percent of your income goes to needs.
False
True
6
What are trade-offs?
when you exchange a harm for another possibleharm
when you exchange a benefit for a possible harm
when you exchange a benefit you have to gain another possible benefit
when you exchange a harm for a possible benefit
7
Is going to Hawaii a want or need?
Need
Want
8
What is financial literacy?
the study of how the United States uses money
the study of how the world uses and manages money
the study of the stock market and how money is traded
understanding how to properly manage money
9
There are limited resources to fulfill our limited wants and needs.
True
False
10
In the 60/20/20 rule, 60% of your income goes to savings.
False
True
11
In the 50/30/20 rule, 20% of your income goes to savings.
False
True
12
What is budgeting?
to create a bank account to keep your savings
to create a plan that shows how you will spend and save your money
to buy stocks and analyze which ones will benefit you
to create a plan to help you during financial problems
13
Water, food, and shelter are examples of needs.
False
True
14
Are clothes a want or need?
Need
Want
15
The opportunity cost is the next best alternative of a decision.
False
True

Financial Literacy Coaching WriteUp Quiz Flashcards | StudBud