business and finance chapter 1 and 2

Higher interest rates can be caused by:

a lower money supply

a resume gives a potential employer ___________

a summary of your education, training, experience, and qualifications

who is most likely to benefit from inflation?

borrowers

The problem of bankruptcy is associated with poor decisions in the ______________ component of financial planning

borrowing

The first step of developing a personal financial plan is __________

determining your current financial situation

In career planning process, after identifying specific job opportunities, a person should:

develop a resume and cover letter

________ is the study of the decisions that go into making, distributing and using goods and services

economics

the study of how wealth is created and distributed is:

economics

Brock Trotter has gone to monster.com as well as his local newspaper and has found five job possibilities that he feels fit his abilities and interests. Which step in the career planning process has Brock completed?

evaluate the employment market to identify specific employment opportunities

(T/F) A long-term goal is one you expect to reach within six months or so.

false

(T/F) Developing and using a budget is part of the "obtaining" component of financial planning

false

(T/F) Financial planning has specific techniques that will be effective for every individual household

false

(T/F) Gross Domestic Product (GDP) measures the total value of goods and services produced within a country's borders, excluding items produced with foreign resources

false

(T/F) Higher inflation usually results in lower interest rates

false

(T/F) Lenders benefit more than borrowers in times of high inflation

false

(T/F) Most jobs require the same personality traits

false

(T/F) Present value is also referred to as compounding

false

(T/F) The things you like to do are called your aptitudes

false

(T/F) Working in a temporary job is a bad idea if you have high career goals

false

(T/F) developing financial goals is the first step in the financial planning process

false

(T/F) increased demand for a product or service will usually result in lower prices for the item

false

The amount that your original deposit will be worth in the future, based on earning a specific interest rate over a specific period of time is its _____________.

future value

A functional resume is best for a person who:

has diverse skills

Which of the following personality traits would probably be helpful for someone who worked as a salesperson?

outgoing and friendy

one of the external factors you should consider before you begin your job search is

social influences

a ______________ resume is designed to obtain a specific job

targeted

(T/F) A decrease in the demand for a product or service may result in a decrease in wages for people producing that item

true

(T/F) A decrease in the demand for a product or service may result in a decrease in wages for people producing the item

true

(T/F) A person's birth, sex, height, weight should only be included on a resume if that info relates specifically to qualifications for an employment position

true

(T/F) Analyzing your current financial position is part of the first stage of the financial planning process

true

(T/F) If you change careers, you may need to accept a lower wage as you work to gain experience in your new career field.

true

(T/F) Inflation reduces the buying power of money

true

(T/F) Opportunity costs refer to what a person gives up when making a decision

true

(T/F) People who are happy with their work are more likely to be happy in other areas of their lives as well.

true

(T/F) Risks associated with most financial decisions are fairly easy to measure

true

(T/F) The average person will spend about 86,000 hours on the job in his/her lifetime

true

(T/F) Trade balance is defined as the difference between a country's exports and imports

true

(T/F) increased technology can result in a reduction of employment in one industry while creating new jobs in other industries

true

Your financial goals should be all of the following EXCEPT_________ a. unclear b. specific c. set within a determined time frame d. realistic

unclear

In the United States, the central activity of a person's life is typically

work

most successful people _________

work well with others

about how often should you reevaluate your career goals?

about every five years

The first step of the career planning process is to:

access your interests, abilities, and goals

The stages that an individual goes through based on age, financial needs, and family situation is called the :

adult life cycle

mathematical abilities, problem-solving skills, and physical dexterity are examples of

aptitudes

____________ are purchases that you make often and use up quickly.

consumable goods

A ________ is a person who purchases and uses goods or services

consumer

compared to a job, a career

demands regular updating of knowledge

Ned Turner has done some research and has found that the population of the U.S. is aging which means there will be an increased need for health care professionals in the future. This is an example of _____________________ influencing jobs in the future

demographic trends

(T/F) Economics is the study of using money to achieve financial goals

false

(T/F) Most decisions have only a few alternatives from which to choose

false

(T/F) interest on savings is calculated by multiplying the money amount times the opportunity cost times the annual interest rate

false

(T/F) once you have had a formal interview with an employer, you should not contact the employer again unless you are offered the job

false

(T/F)Time value of money refers to changes in consumer spending when inflation occurs

false

___________ are tendencies of people moving from one area of the country to another as financial centers shift location.

geographic trends

Getting a college education, buying a car, and starting a business are examples of ___________

goals

a type of employment agency that seeks out high qualified people to fill important positions for an employer is a

headhunter

increased consumer spending will usually cause

higher employment levels

higher consumer prices are likely to be accompanied by...

higher interest rates

a ______________ is an employment position that is obtained mainly to make money

job

Spending a morning or afternoon with a worker in the type of job that interests you is called

job shadowing

The way people choose to live their lives, based on the values they have chosen is called

lifestyle

some savings and investment choices have the potential for higher earnings. However, these may also be difficult to cash when you need the funds. This problem refers to:

liquidity risk

Saving money to buy a house in ten years and putting a way money for retirement are examples of _______.

long-term goals

The final step of the career planning process is to

plan for career development

to assess the current value of a lump-sum retirement benefit that will be received in 10 years use the ______________ calculation

present value of a single amount

in order to calculate the time value of your savings, you need to know the annual interest rate, the length of time your money will be in an account, and the _______.

principal

the purpose of a screening interview is to :

reduce the number of applicants for the job

What would increase the risk of a loan?

rising consumer prices

the education section of the resume should include:

schools attended

the first step in career planning is

self-analysis

A chronological resume sequences personal data based on

time

(T/F) Opportunity costs refer to time, money, and other resources that are given up when a decision is made

true

A record of the jobs you have held and how long you stayed with each employer is called your

work history

with an inflation rate of 9 percent, prices would double in about _______ years

8

Barb Hotchkins is in the 28 percent tax bracket. A tax-exempt employee benefit with a value of $500 would have a tax equivalent of

$694

Which of the following would be competency commonly associated with successful people?

- an ability to work well with others - a desire to do tasks better than they have been done - an ability to solve problems creatively - well developed written and oral communication skills

Your values are shaped by

- the news media - religion - your family