Question

Through the successful study of personal finance, an individual will be

A. better prepared for potential problems.

B. able to learn how to spend available assets.

C. faced with long-term challenges.

D. more likely to avoid high opportunity costs.

Answer 1

Studying personal finance prepares individuals to handle potential financial issues by teaching investment strategies, savings, account management, loans, credit scores, and informed decision-making. This knowledge helps in wealth accumulation and financial stability.

Step-by-step explanation:

The study of personal finance prepares an individual to be better prepared for potential problems. Through this study, one can learn to assess ways to be a wise investor in the stock market, begin a savings program, maintain a checking account, understand different types of loans, and comprehend the responsibilities of borrowing money. Moreover, developing strategies to improve one's credit score makes a person a low-risk borrower.

By learning to avoid credit card debt, evaluate the costs and benefits of personal bankruptcy, buy insurance wisely, and even consider charitable giving within a budget, a person gains the ability to provide for basic needs while living within their means. This helps in becoming an informed decision-maker in financial matters and aids in accumulating personal wealth.

Building financial wealth is enhanced by significant additional education and training after high school and early savings. It involves understanding the functions of financial institutions and their impact on households and businesses, along with the difficult task of forecasting future market changes.

Answer 2

The first alternative is correct (A).

Personal finance courses aim to teach people how to balance their budget by controlling spending and increasing revenue. If a person takes a course and learns to take care of their financial health, he or she will probably be prepared to deal with any future financial problems.