Principles of Financial Planning example #37093

26 May 2024
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15 test answers

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question
budget
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a plan that balances available resources and expenses
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income
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the money a person earns for providing a service or selling goods
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opportunity cost
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the principle that one opportunity must be given up in order to consume or produce another
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personal finances
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an individual's assets and management of them
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risk
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the chance or possibility of loss
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In American society, which of these is an example of a want?
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television
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Planning to finance higher education helps people prepare for their financial future because it teaches them about....
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....investing in their future.
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A __________ is a plan in which an individual balances available resources and expenses.
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budget
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To assess risk and return involved in a purchase decision, which practical questions should a potential buyer ask?
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-What can go wrong? -What is the likely return? -Is the risk worth the return?
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How do short-term goals differ from long-term goals?
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Short-term goals involve less planning than long-term goals.
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Which of these is the most significant item that personal finance skills can affect?
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one's quality of life
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Which of these is the best example of successfully managing a financial asset?
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opening a new savings account
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_____________ are items such as utilities, rent, and food—items that one can't do without
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Needs
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Which of these is the best example of an asset?
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the shirt someone is wearing
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Which would be most helpful when considering a large expenditure that might require repeating payments?
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creating a budget to consider future income and spending