Principles of Financial Planning

5 November 2022
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17 test answers

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question
.... are items such as utilities, rent, and food—items that one can't do without.
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Needs
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What term describes using assets to accomplish a goal in the present?
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spending
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How do long-term goals differ from short-term goals?
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Long-term goals require more patience than short-term goals do.
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The cost of a decision is also known as a(n)
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opportunity cost
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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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Personal finances encompass an individual's
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assets
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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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In American society, which of these is an example of a want?
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television
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If Emma decides to buy a new laptop for school, which of the following is most likely to be her opportunity cost?
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going somewhere on spring break
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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
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To assess risk and return involved in a purchase decision, which practical questions should a potential buyer ask? Check all that apply.
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What can go wrong? What is the likely return? Is the risk worth the return?
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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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How do short-term goals differ from long-term goals?
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Short-term goals are more immediate than long-term goals.
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In personal finance, what is considered a need?
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something one cannot live without
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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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This chart shows Dan's budget: Did Dan stay on budget? Why or why not?
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No, Dan should reduce his discretionary spending.
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There are four steps in solving one's personal financial challenges: 1. considering opportunity costs 2. assessing risks and returns 3. setting short- and long-term goals 4. assessing needs and wants Which of these is the correct order of these steps?
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4, 1, 2, 3