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Principles of Financial Planning

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Nov 10th, 2023
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17 test answers
question
.... are items such as utilities, rent, and food—items that one can't do without.
answer
Needs
question
What term describes using assets to accomplish a goal in the present?
answer
spending
question
How do long-term goals differ from short-term goals?
answer
Long-term goals require more patience than short-term goals do.
question
The cost of a decision is also known as a(n)
answer
opportunity cost
question
Which of these is the best example of successfully managing a financial asset?
answer
opening a new savings account
question
Personal finances encompass an individual's
answer
assets
question
Which of these is the best example of an asset?
answer
the shirt someone is wearing
question
In American society, which of these is an example of a want?
answer
television
question
If Emma decides to buy a new laptop for school, which of the following is most likely to be her opportunity cost?
answer
going somewhere on spring break
question
Which would be most helpful when considering a large expenditure that might require repeating payments?
answer
creating a budget to consider future income and spending
question
To assess risk and return involved in a purchase decision, which practical questions should a potential buyer ask? Check all that apply.
answer
What can go wrong?What is the likely return?Is the risk worth the return?
question
Which of these is the most significant item that personal finance skills can affect?
answer
one's quality of life
question
How do short-term goals differ from long-term goals?
answer
Short-term goals are more immediate than long-term goals.
question
In personal finance, what is considered a need?
answer
something one cannot live without
question
A...is a plan in which an individual balances available resources and expenses.
answer
budget
question
This chart shows Dan's budget:Did Dan stay on budget? Why or why not?
answer
No, Dan should reduce his discretionary spending.
question
There are four steps in solving one's personal financial challenges:1. considering opportunity costs2. assessing risks and returns 3. setting short- and long-term goals4. assessing needs and wantsWhich of these is the correct order of these steps?
answer
4, 1, 2, 3
1 of 17
question
.... are items such as utilities, rent, and food—items that one can't do without.
answer
Needs
question
What term describes using assets to accomplish a goal in the present?
answer
spending
question
How do long-term goals differ from short-term goals?
answer
Long-term goals require more patience than short-term goals do.
question
The cost of a decision is also known as a(n)
answer
opportunity cost
question
Which of these is the best example of successfully managing a financial asset?
answer
opening a new savings account
question
Personal finances encompass an individual's
answer
assets
question
Which of these is the best example of an asset?
answer
the shirt someone is wearing
question
In American society, which of these is an example of a want?
answer
television
question
If Emma decides to buy a new laptop for school, which of the following is most likely to be her opportunity cost?
answer
going somewhere on spring break
question
Which would be most helpful when considering a large expenditure that might require repeating payments?
answer
creating a budget to consider future income and spending
question
To assess risk and return involved in a purchase decision, which practical questions should a potential buyer ask? Check all that apply.
answer
What can go wrong?What is the likely return?Is the risk worth the return?
question
Which of these is the most significant item that personal finance skills can affect?
answer
one's quality of life
question
How do short-term goals differ from long-term goals?
answer
Short-term goals are more immediate than long-term goals.
question
In personal finance, what is considered a need?
answer
something one cannot live without
question
A...is a plan in which an individual balances available resources and expenses.
answer
budget
question
This chart shows Dan's budget:Did Dan stay on budget? Why or why not?
answer
No, Dan should reduce his discretionary spending.
question
There are four steps in solving one's personal financial challenges:1. considering opportunity costs2. assessing risks and returns 3. setting short- and long-term goals4. assessing needs and wantsWhich of these is the correct order of these steps?
answer
4, 1, 2, 3