Question

Financial literacy means . . .?

a. You understand assumptions and estimates of plant managers
b. You can create a firm’s financial statements
c. You can make better decisions using financial numbers
d. You can analyze and understand decisions made by other managers
e. All of the above
f. C and D only

Answer 1

F. C and D only

Step-by-step explanation:

Financial Literacy

This is when an individual or person possesses the skills, techniques and knowledge that allows him/her (the individual or person) to make informed and efficient decisions with all of their financial resources. It is the ability to understand how money works. This includes, how individuals make money, manage it and invest it properly. Financial skills possessed by a financial literate includes budgeting, personal financial management, investment, expenditure and so on.

Understanding assumptions and estimates of plant managers and creating a firm financial statement are NOT part of the indicators for financial literacy.