Question

Once example of a monthly expense you can pay down/pay off and be rid of is:

Question 4 options:

credit card debt


monthly health insurance premium


phone bill


water bill

Question 5 (5 points)
Which of the following best explains why credit unions often offer lower interest rates on loans compared to banks?

Question 5 options:

Credit unions have more members than banks


Credit unions are for-profit institutions


Credit unions focus on serving members rather than maximizing profits


Credit unions are regulated by the Federal Reserve

Question 6 (5 points)
What is the primary difference in ownership structure between banks and credit unions?




Question 6 options:

Banks are owned by members, while credit unions are owned by shareholders


Banks are owned by shareholders, while credit unions are owned by members


Banks are owned by the government, while credit unions are privately owned


There is no difference in ownership structure between banks and credit unions

Question 7 (5 points)
Which of the following best describes the concept of "opportunity cost" in consumer purchasing?

Question 7 options:

The actual price paid for an item


The cost of shipping and handling


The value of alternatives given up when making a purchase

Question 8 (5 points)
What is a potential advantage of shopping online versus shopping locally?

Question 8 options:

Online prices are always lower


You may find a wider selection of products


You can always return items more easily

Question 9 (5 points)
If you're using the Snowball Method, which debt do you focus on first after you've made all of your minimum payments?

Question 9 options:

Lowest interest rate


Highest balance


Highest interest rate


Lowest balance

Question 10 (5 points)
What is defaulting?

Question 10 options:

Paying only the interest and not the principal


Paying off your debt early


Failing to pay back a creditor

Question 11 (5 points)
What is the primary reason it's important to develop good money management habits as a teenager?

Question 11 options:

To qualify for more credit cards when you turn 18


To impress your friends with how much you can spend


To prepare for managing larger amounts of money as an adult


To convince your parents to give you a bigger allowance

Question 12 (5 points)
Which of the following best demonstrates using "common sense" when making a purchase?

Question 12 options:

Purchasing items immediately without thinking about the cost


Considering if you really need an item before buying it


Always choosing the most expensive option


Buying something because it's on sale, even if you don't need it

Answer 1

Here are the answers to your questions:

**Question 4: One example of a monthly expense you can pay down/pay off and be rid of is:**
- **Answer:** credit card debt

**Question 5: Which of the following best explains why credit unions often offer lower interest rates on loans compared to banks?**
- **Answer:** Credit unions focus on serving members rather than maximizing profits

**Question 6: What is the primary difference in ownership structure between banks and credit unions?**
- **Answer:** Banks are owned by shareholders, while credit unions are owned by members

**Question 7: Which of the following best describes the concept of "opportunity cost" in consumer purchasing?**
- **Answer:** The value of alternatives given up when making a purchase

**Question 8: What is a potential advantage of shopping online versus shopping locally?**
- **Answer:** You may find a wider selection of products

**Question 9: If you're using the Snowball Method, which debt do you focus on first after you've made all of your minimum payments?**
- **Answer:** Lowest balance

**Question 10: What is defaulting?**
- **Answer:** Failing to pay back a creditor

**Question 11: What is the primary reason it's important to develop good money management habits as a teenager?**
- **Answer:** To prepare for managing larger amounts of money as an adult

**Question 12: Which of the following best demonstrates using "common sense" when making a purchase?**
- **Answer:** Considering if you really need an item before buying it

If you have any more questions or need further clarification, feel free to ask!