summative introduction to personal finance & setting goals part i: multiple choice. 1. which statement is…

summative introduction to personal finance & setting goals part i: multiple choice. 1. which statement is true about most millionaires? a. most millionaires work fewer than 40 hours a week. b. investors who buy and hold stocks for the long - term have better long - term stock returns than those who buy and sell stocks more frequently. c. most millionaires work in glamorous jobs. (sports, entertainment, or high tech.) d. most millionaires attended private schools. 2. achieving personal wealth involves planning and making good financial decisions. which of the following is not a good choice? a. getting a good education b. investing in the stock marked for the long term c. save early and often. d. buy a new car every two years 3. which of the following are incentives for people to save money? a. interest b. being able to send your kids to college c. retirement d. vacation e. all of the above 4. which of these is not a smart goal? a. i will buy a single family home by the time i turn 30 years old. b. i will graduate high school this year. c. i will save $50 a paycheck until march of 2029. d. i will exercise for 30 minutes, twice a week, for six months. 5. which of the following is a smart medium - term goal? a. i will graduate high school in the spring of 2026. b. i will have all a’s at the first marking period interim date in 2025. c. i will buy a house after i graduate from a 4 - year college by 2030. d. i will walk in the parade at the homecoming football game september 2

summative introduction to personal finance & setting goals part i: multiple choice. 1. which statement is true about most millionaires? a. most millionaires work fewer than 40 hours a week. b. investors who buy and hold stocks for the long - term have better long - term stock returns than those who buy and sell stocks more frequently. c. most millionaires work in glamorous jobs. (sports, entertainment, or high tech.) d. most millionaires attended private schools. 2. achieving personal wealth involves planning and making good financial decisions. which of the following is not a good choice? a. getting a good education b. investing in the stock marked for the long term c. save early and often. d. buy a new car every two years 3. which of the following are incentives for people to save money? a. interest b. being able to send your kids to college c. retirement d. vacation e. all of the above 4. which of these is not a smart goal? a. i will buy a single family home by the time i turn 30 years old. b. i will graduate high school this year. c. i will save $50 a paycheck until march of 2029. d. i will exercise for 30 minutes, twice a week, for six months. 5. which of the following is a smart medium - term goal? a. i will graduate high school in the spring of 2026. b. i will have all a’s at the first marking period interim date in 2025. c. i will buy a house after i graduate from a 4 - year college by 2030. d. i will walk in the parade at the homecoming football game september 2

Answer

Brief Explanations:

  1. Question 1: Long - term investing in stocks is a common and successful strategy among millionaires. Buying and holding reduces transaction costs and takes advantage of compounding.
  2. Question 2: Buying a new car every two years is a depreciating expense and not a good financial decision for wealth - building.
  3. Question 3: Interest on savings, ability to fund children's college, retirement, and vacations are all incentives for saving.
  4. Question 4: All the options are SMART goals as they are specific, measurable, achievable, relevant, and time - bound.
  5. Question 5: Graduating high school in the Spring of 2026 is a medium - term SMART goal as it has a clear time frame and is an achievable milestone.

Answer:

  1. b. Investors who buy and hold stocks for the long term have better long - term stock returns than those who buy and sell stocks more frequently.
  2. d. Buy a new car every two years
  3. e. All of the above
  4. None of the above (as all are SMART goals)
  5. a. I will graduate high school in the Spring of 2026.