BADM 251: Chapter 1

A primary determinant of your quality of life is

Wealth

Money is

a medium of exchange

Employee benefits may include - retirement plans - health insurance - employee disounts - tuition reimbursements

all of these

Your income is directly related to your - geographical location - age - education

all of these

This is a measure of inflation based on changes in the cost of a market basket of consumer goods and services:

consumer price index (CPI)

The three key groups in the economic environment are

government, consumers, and business

Financial goals that last between 2 and 5 years are considered ____ goals.

intermediate

The main reason to do personal financial planning is to

maximise overall utility

Tax planning is most commonly done to

minimize taxes

The average propensity to consume refers to the

percentage of income spent for current consumption

The amount of goods and services each dollar buys at a given point in time is:

purchasing power

Family financial goals should be

realistically attainable

Sam and Ann are in their late 20s with 3 young children. Their most important financial planning concerns would probably include all of the following except

retirement and estate planning

Inflation refers to

rising prices

Finacial goals should be

specific, attainable, and prioritized

Financial planning can help us to

spend wisely

The term most closely associated with quality of life is

standard of living

Utility refers to

the satisfaction you receive from purchasing something

The phase of the economic cycle when a contraction ends and an expansion begins is referred to as __.

trough

The best way to resolve money disputes is to be _____. - aware of your partner's financial style - be willing to compromise - keep the lines of communication open

All of the above