Jessica is very proud of herself for having $5,000 in her savings account that pays 4 percent interest. She currently has a balance of $2,300 on her credit card account that charges 21 percent interest
Jessica thinks she is making a wise financial decision by keeping her money in her savings account instead of paying off her credit card balance. What financial principle from Chapter 1 would you use to give her good advice?
A) Mind games, financial personality, and your money
B) The time value of money
C) Taxes affect personal financial decisions.
D) Both A and C
Answer: D
You might also like to view...
One important goal of a buffer is to
A) delay stating the bad news. B) establish common ground with your reader. C) make your reader wonder what the message is about. D) divert the reader's attention to a more pleasant subject. E) shift the blame to the reader or a third party.
Establishing credibility in persuasive messages
A) is impossible unless the audience is already familiar with you. B) is a waste of time, since data and evidence are the only things audiences find convincing. C) requires a condescending, "know-it-all" tone. D) works only when you make negative comments about your company's competitors. E) is essential when you are trying to persuade a hostile or skeptical audience.
Which of the following is not true of a corporation?
a. It may enter into binding legal contracts in its own name. b. It may sue and be sued. c. The acts of its owners bind the corporation. d. It may buy, own, and sell property.
The use of concept tests during the idea screening stage of the new-product development process reduces the efficiency of screening
Indicate whether the statement is true or false a. True b. False