You have a friend who finds out that she will need $5,000 for a down payment on a new car. To her, that seems like an impossible amount to save. As a result she gets discouraged, goes online and purchases over $150 on make-up, clothes, and accessories suggested by an influencer. She didn’t need these items, but they do make her feel better for a short time. However, she soon gets discouraged again because she really would like a new car.   (4 points) (a) What kind of spending is your friend doing? (b) Now that you have taken this course, what could you say to this friend to help them feel less discouraged? Suggest a realistic plan for how they could save for the downpayment on that new car. Include actual numbers to make your answer more convincing. You could also suggest alternatives.

Compound interest grows faster than simple interest because:

(4 points) Affordability has become a big issue in the United States, especially regarding the ability of young adults to purchase a home. In response to this issue, the President of the United States recently suggested that banks offer 50-year mortgages to address this affordability issue. Based on what you have learned in this course, do you think that the president’s proposal of a 50-year mortgage would actually make purchasing a home more affordable? Why or why not?  Provide a detailed and clearly written argument using complete sentences. Tip: Include some numbers/calculations to make your argument more convincing.

Which of the following is an unsecured loan?

A high credit score generally indicates:

When saving and investing, be mindful of how ling money is tied up because:

Disproportionately high poverty rates are impacted by:

The international poverty line is about:

Asset ownership has which of the defining effects?

Absolute poverty: