16
practice testMultiple Choice

Practice Test

Question 16 • Personal Finance and Economics

The Smith family is deciding whether to buy a new washer or a gym membership. Which is the best example of a wise family spending decision?

Answer
A
The family meets to go over the budget and decide which item to buy.
B
The mother signs up for the gym and decides to get into shape.
C
The father sees a sale on washers and decides to buy one on the spot.
D
The family meets to discuss desires and decides to finance both items.

Explanation

A wise spending decision considers the family’s budget and compares priorities before buying. Meeting to review the budget and decide between the washer and gym membership helps the family choose what it can afford and needs most. Buying on the spot or financing both without weighing the budget could lead to unnecessary debt.

AI-written and checked against the verified answer.

Previous
Next