1.Sandy wants to know how much she needs to save today to have $5,000 in five years at a 7% interest rate. How much should she invest today?

a.3500

b.3946

c.3565

d.not enough information is provided

2.Making personal finance decisions enhances your employability because

		a.employers prefer to hire people with significant assets.
		b.making decisions increases your decisiveness.
		c.you are managing yourself and showing initiative.
		d.None of these are correct.

3.The relationship between risk and return is positive because

		a.the longer the term of the investment, the more exposed it is to negative inflation effects.
		b.investors need to be compensated with additional return on investment to bear additional risk.
		c.not every investment has risk, so there is really no distinct relationship.
		d.Both A and B are correct.

4. Why is it so important that you make all of your credit and loan payments on time?

		a.Late payment history lasts 7 years on your credit file.
		b.The lender will be annoyed and not extend additional credit to you.
		c.Late payment history lasts 10 years on your credit file.
		d.Paying your credit cards and loans late just once will lead to bankruptcy.