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Exam 1: Personal Finance Basics and the Time Value of Money

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Question 21

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The first step of the financial planning process is to:

A) develop financial goals.
B) implement the financial plan.
C) determine your current financial situation.
D) review and revise your financial plan.
E) create a financial action plan.

F) B) and E)
G) C) and D)

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Question 22

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Describe the S-M-A-R-T approach to developing financial goals.Give an example.

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Financial Goals should be spec...

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Question 23

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Time value of money refers to changes in consumer spending when inflation occurs.

You are planning to buy a house in five years.Approximately how much do you need to deposit today to have a $10,000 down payment if your investment will make 6%?

Robo-advisors,3-D printing,robotics,wearable technology,and other innovations will influence your financial decisions in the following ways,except:

Developing and using a budget is part of the "obtaining" component of financial planning.

Financial planning information sources generally do not include:

People are commonly overwhelmed by the many influences on personal financial decisions.What are the factors affecting personal financial planning?

The changing cost of money when borrowing is referred to as ________ risk.

Paul Carter is 42 years old,married and has three children,ages 15,13 and 8.This discussion is a demonstration of what factor in personal financial planning?

Describe the relationship between the annual inflation rate and prices using the Rule of 72.

The main responsibility of The Fed is to:

Determining your current financial situation is a part of which step in the financial planning process?

Opportunity costs refer to what a person gives up when making a choice.

What are the six steps in the financial planning process?

The financial planning process concludes with efforts to:

Sophia Martin's goal has been to travel around the world.She has now been traveling for six months and she has decided she is a little tired of living out of a suitcase.She has decided to go home,look for a part time job,and take shorter trips to locations around the world that appeal to her.Which step in the financial planning process does this scenario most likely demonstrate?

The problem of bankruptcy is associated with misuse of credit in the ________ component of financial planning.

When prices are increasing at a rate of 12 percent,the cost of products would double in about how many years?

Resources for financial planning can be found from: