Shaunda wants to buy her grandmothers car to drive back and forth to college next year. Her grandmother agrees to sell Shaunda the car for $1, 200 in the next 6 months. This is an example of what type of goal?

MONEY MANAGEMENT

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Shaunda wants to buy her grandmother’s car to drive back and forth to college next year. Her grandmother agrees to sell Shaunda the car for $1, 200 in the next 6 months. This is an example of what type of goal?

A	short term
B	medium term
C	long term
D	financial term

Explanation:

Detailed explanation-1: -There are several important factors that influence decision making. Significant factors include past experiences, a variety of cognitive biases, an escalation of commitment and sunk outcomes, individual differences, including age and socioeconomic status, and a belief in personal relevance.

Detailed explanation-2: -Convenience debt is when you use credit to buy something expensive and pay over a long period of time. A car loan is an example of convenience debt.

Detailed explanation-3: -The 20/10 rule of thumb limits consumer debt payments to no more than 20% of your annual take-home income and no more than 10% of your monthly take-home income. This guideline can help you limit the amount of debt you carry, which is important for your financial health and your credit score.

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ECONOMICS (CBSE/UGC NET)

ECONOMICS

MONEY MANAGEMENT