Question 1

David and Gwen are two friends who regularly meet up once a week at the local mall and visit stores and shop while they catch up. David and Gwen are most likely engaging in which of the following potentially dangerous activities?

Accepted Answer

Binge purchasing can be considered a potentially dangerous activity as it involves excessive shopping that can lead to financial problems or compulsive buying disorder. The other options do not inherently suggest harmful behavior in the context given.

Question 2

Nicole went online to buy a birthday present for her sister. Just as she was about to finish up and pay, she noticed an advertisement on the side of the Web page featuring a pair of boots that were just her style. She immediately fell in love with them and added them to her purchase. Nicole engaged in ____________.

Accepted Answer

Nicole's action of adding the boots to her purchase after seeing an advertisement and feeling an immediate desire for them is a classic example of impulse buying. This behavior is characterized by making spontaneous, unplanned purchases influenced by emotions or feelings at the moment.

Question 3

Gretchen has five different credit cards and a large amount of debt among all of them. In order to help her get out of her credit card debt more quickly and by reducing her finance charges, what would you recommend she try?

Accepted Answer

Consolidating credit card debt to the card with the lowest interest rate can help reduce the amount of interest paid over time, making it easier to pay off the debt faster.

Question 4

Which of the following is not one of the questions you should ask yourself before making a purchase in order to help reduce excess spending?

Accepted Answer

Asking if you have room on your credit card for a purchase focuses on available credit rather than actual need or financial health, which does not help in reducing excess spending. The other options encourage thoughtful consideration of the necessity, emotional motivation, and budgeting for the purchase.

Question 5

Kate's refrigerator broke and she had to buy a new one with a credit card because she did not enough money in her savings to pay for this unexpected but necessary expense. What should Kate do to make sure this doesn't hurt her finances and further?

Accepted Answer

Making cuts to her spending and using the extra money to pay off the credit card bill is a proactive approach to managing debt and avoiding high interest charges.

Question 6

Explain what an expense log is and how it helps you analyze your spending.

Accepted Answer

The answer of Explain what an expense log is and...

Question 7

What are a couple of the benefits of making a to-do list rather than just trying to remember what you need to do?

Accepted Answer

The answer of What are a couple of the benefits...

Question 8

According to research cited in the text, what is the real difference between A and C students?

Accepted Answer

The answer of According to research cited in the text,...

Question 9

Why is it important to take your time when creating a budget for yourself?

Accepted Answer

The answer of Why is it important to take your...

Question 10

Marla buys a latte from a local coffee shop with her credit card each morning. Why might this be an unwise way to use her credit card?

Accepted Answer

The answer of Marla buys a latte from a local...

Question 11

The general steps to follow for both time and money management are to analyze, prioritize, and plan.

Accepted Answer

These steps are fundamental for effective management in both time and money contexts, as they involve understanding current situations (analyze), determining what is most important (prioritize), and creating a strategy to achieve goals (plan).

Question 12

If you have too much to do and too little time, the most effective and efficient thing to do is to cut back on sleep.

Accepted Answer

Cutting back on sleep can lead to decreased productivity, impaired cognitive function, and increased stress, making it harder to effectively manage tasks.

Question 13

Discretionary time is the most flexible type of time.

Accepted Answer

Discretionary time refers to the period when an individual has the freedom to choose what to do, making it the most flexible type of time as it is not committed to work, obligatory activities, or essential tasks.

Question 14

One of the most important money-management skills is the ability to distinguish between fixed committed and variable committed expenses.

Accepted Answer

The answer of One of the most important money-management skills...

Question 15

When creating a schedule, you should plan to work on your most important and demanding tasks for your prime time of day.

Accepted Answer

Your prime time is when you are most alert and productive, so scheduling demanding tasks during this period can lead to more efficient and effective work.

Question 16

Although it's tempting, you shouldn't get in the habit of rewarding yourself when you complete tasks on your to-do list, as it will eventually decrease your motivation.

Accepted Answer

Rewarding yourself for completing tasks can actually increase motivation by providing positive reinforcement, making you more likely to continue accomplishing tasks in the future.

Question 17

The need for perfection can cause some people to procrastinate.

Accepted Answer

The desire for perfection can lead to procrastination because individuals may fear that their work will not meet their high standards, causing them to delay starting or completing tasks.

Question 18

Self-handicapping involves creating obstacles to your success in order to have an easy excuse for poor performance.

Accepted Answer

Self-handicapping is a strategy where individuals create or claim obstacles to their own performance so that if they do poorly, they can attribute the failure to the obstacle rather than their lack of ability, thus protecting their self-esteem.

Question 19

Since you don't always know how much they will be, you don't need to factor discretionary expenses into your monthly budget.

Accepted Answer

Discretionary expenses, while variable, should still be estimated and included in your monthly budget to ensure you are accounting for all potential spending and maintaining financial control.

Question 20

When assessing your budget, you don't need to include tips and your allowance in your income, if you receive them.

Accepted Answer

When assessing your budget, it's important to include all sources of income, including tips and allowances, to have an accurate understanding of your financial situation.

Quiz 8: Managing Your Resources