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