BANKING GENERAL KNOWLEDGE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
poor investment choices
|
|
|
identity theft
|
|
|
overspending
|
|
|
they just don’t understand their finances
|
|
|
no worker’s compensation for in-game injuries
|
Detailed explanation-1: -Many of the athletes who find themselves broke are big spenders. They make the mistake of matching their spending level to what their peak earnings allow (or beyond). When those earnings end, the payments due on houses, cars, and a lavish lifestyle continue-and the athletes fall off a financial cliff.
Detailed explanation-2: -Professional athletes are overpaid because they do not provide society with an essential function that improves or strengthens our world, in comparison to other professionals such as medical doctors, lawyers, and teachers.
Detailed explanation-3: -According to a 2009 Sports Illustrated article, 60 percent of former NBA players are broke within five years of retirement. By the time they have been retired for two years, 78% of former NFL players have gone bankrupt or are under financial stress.
Detailed explanation-4: -There are three big reasons for the disparity in pay: league structure, salary caps and rules around “guaranteed money” for players. NBA pros have it especially good. In addition to having a higher average salary per player, they also make more money off the court than athletes in the NFL and MLB.