4
lesson pretestMultiple Choice

Pretest

Question 4 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

To assess the risk and return involved in a purchase decision, which practical questions should a potential buyer ask? Choose three correct answers.

Answer
A
What are my friends buying?
B
How will it affect my social status?
C
What is the likely return?
D
Is the risk worth the return?
E
What can go wrong?

Explanation

Assessing a purchase’s risk and return means estimating the likely benefit, identifying what could go wrong, and deciding whether the potential benefit justifies that risk. Those questions are “What is the likely return?”, “What can go wrong?”, and “Is the risk worth the return?” Social status and friends’ purchases do not directly assess risk and return.

AI-written and checked against the verified answer.

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