Chapter 3 , personal finance
A series of equal, regular deposits is called an annuity
True
Supply and demand are examples of market force
True
The first step of financial planning is to determine your current financial status
True
The main cause of inflation is an increase in demand without an increase in supply
True
A series of equal regular deposits is called
An annuity
Earning interest on previously earned interest is called
Compounding
The ways in which people make, distribute, and use their goods and services is called the
Economy
A new car is an example of need
False
Interest rates provide an indicator of how well people are living
False
Saving money for the holidays is an example of a long-term goal
False
The time value of money is the amount your original deposit will be worth in the future, based on earning a specified interest rate over a set period of time
False
You can buy and touch intangible items
False
The central banking organization of the United States is called the
Federal Reserve System
Financial plans that are more than five years off are called
Long-term goals
The trade-off made by making one choice instead of another is commonly referred to as
Opportunity cost
Spending, saving, and investing to have the kind of life you want and the financial security can be achieved by
Personal financial planning
Hairstyling and bookkeeping are examples of
Services
Saving for a vacation next summer or paying off small debts by the end of the year are examples of
Short-term goals
The amount goods and services available for sale is called
Supply
The federal reserve system is the central banking system of the United States
True