What Is a Basic Guide for Financial Decision Making

question 43

Multiple Choice

What is a basic guide for financial decision making?

• A) Make decisions where the benefits exceed the costs.
• B) Make decisions where the total benefits exceed the total costs.
• C) Make decisions where the average benefits exceed the fixed costs.
• D) Make decisions where the average benefits exceed the average costs.

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Definitions:

Interest Annually

Interest annually refers to interest that is calculated and added to the principal balance once per year.

Term Deposit

A bank deposit that has a fixed term and typically offers a higher interest rate than savings accounts.

Credit Union

A member-owned financial cooperative that provides traditional banking services.

Simple Interest

Interest calculated only on the principal amount, or the original sum of money borrowed or invested, without considering the effect of compounding over time.