Question

1) The Consumer Price Index is a measure of __________.
Select one:
a. recession.
b. inflation.
c. purchasing power.
d. GDP.
e. consumption.

2) The costs of leasing are __________.
Select one:
a. the down payment
b. the lease payments.
c. the buyout.
d. a. and b.
e. a., b., and c.

3) Which life stage typically is best characterized by the following financial circumstances: career building, family building, increased earning, increased spending, asset accumulation, desire to protect dependents and assets, decrease in willingness to assume risk?
Select one:
a. Adolescence
b. Early adulthood
c. Middle adulthood
d. Late adulthood
e. Old Age

4) Uninsurable risks that offer a chance of loss or gain are called __________.
Select one:
a. speculative risks.
b. pure risks.
c. risk shifts.
d. trade-offs.
e. risk avoidance.

5) Uninsurable risks that offer a chance of loss or gain are called __________.
Select one:
a. speculative risks.
b. pure risks.
c. risk shifts.
d. trade-offs.
e. risk avoidance.

Answer 1

Answer 1
b. inflation

Explanation:

Consumer Price Index measures the average change in prices over time that consumers pay for goods and services, commonly known as inflation

Answer 2
b. the lease payments

Explanation:

costs of leasing include lease payments because lease is agreement for rent a property.

whereas Down payment and buy out applicable for purchase of property.

Answer 3
C. Middle adulthood

Explanation:

Middle adulthood are periods of building up: building a family, building a career, increasing earned income, and accumulating asset and risk willingness also low.

In life stage Adolescence and early adulthood assets base is nil,

Late adulthood stage assets base is growing up.

old age stage assets base is using.

Answer 4
a.speculative risks

Explanation:
Speculative risk happens when there is an uncertain potential for gains or losses.
it is uninsurable and offer the chance to gain and loss

pure risk is generally insurable and there is no opportunity for gain.

Risk shifting is the transfer of risk to another party so it means it is insurable.

Risk avoidance deals with eliminating any exposure to risk that poses a potential loss.