A#13 Personal Financing

Benchmark 4-A:

analyze the ways individuals, households, businesses, governments and societies make decisions, are influenced by incentives (economic and intrinsic) and, the availability and use of scarce resources, and that their choices involve costs and varying ways of allocating:

#13 Standards with Test Item Specifications:

Understand personal financing (e.g., banking, credit, debit, lending institutions).

Specifications:

●Identify benefits of savings, investing, building good credit

●Identify types of choices and why one financial decision might be preferred

Sample Question:

Liam won $4,500 on a lottery ticket in July. He plans to use his winnings to pay his tuition in October. Why would Liam most likely place the $4,500 in a savings account?

A. to make a safe investment for the long term

B. to take a risk in hopes that he will receive a high return in a short period

C. to make a liquid investment as he needs to use the money soon*

D. to receive a maximum amount of interest