Personal Finance

A formalized report that summarizes your current financial situation, analyses your financial needs, and recommends future financial activities is a(n):

Financial Plan

Financial goals should take a SMART approach. What does SMART stand for?

Specific, Measurable, Action-oriented, Realistic, Time-based

The first step of the financial planning process is to:

Determine your current financial situation

A chronological résumé presents your education and experience based on:

A reverse time sequence

Liquid assets refer to:

cash and items of value that can be easily converted to cash.

The purpose of a screening interview is to:

determine the best candidates for further interviewing.

A home file should be used for:

financial records for current needs.

The time value of money refers to:

increases in an amount of money as a result of interest earned.

A family with $50,000 in assets and $22,000 of liabilities would have a net worth of:

$28,000

Liabilities are amounts representing:

Debts owed now

If a family planned to spend $400 for food during April but only spent $350, this difference would be referred to as a:

Surplus

A budget deficit would result when a person's or family's:

actual spending is greater than planned spending.

Payments that do not vary from month to month are _____________ expenses

fixed

Inflation is likely to result from:

increased demand by consumers without increased supply.

The main responsibility of the Fed is to:

maintain an adequate supply of money

Jeremy Chase needs to pay off some of his debts over the next few months. Which item on his balance sheet would help him decide what amounts are due within one year?

Current liabilities

Which of the following is an example of an industry trend?

Increased employment opportunities in service industries

___ risk refers to the danger of changes in buying power during times of rising or falling prices.

Inflation

Opportunity cost refers to:

what a person gives up by making a choice.

A person's net worth is computed by:

Subtracting total liabilities from total assets

The stages in the family and financial needs of an adult are called the:

Adult life cycle

Which one of the following presents a summary of cash receipts and payments for a period of time?

Cash flow statement

After identifying specific employment opportunities in the career planning and advancement process, a person should:

Develop a resume and cover letter

Which of the following is a question associated with the saving component of financial planning?

Do you have adequate emergency fund?

Paulo Valle has just moved into a new house and needs a lawn mower, since he has always lived in apartments and now he has a lawn to mow. What type of goal would this be for Paulo?

Durable-product goal

Which of the following payments would be considered a variable expense?

Electricity bill

A tax-deferred employee benefit is:

taxed at some future time.

Elijah Ward wants to reduce his fixed expenses. Which action would be appropriate?

Find a place with lower rent

When it comes to savings, most Americans:

Find saving difficult

Determining your current financial situation is a part of which step in the financial planning process?

First

Which one of the following cash outflows should be listed first on a cash flow statement?

Fixed expenses

If a person deposited $75 a month for 5 years earning 7 percent, this would involve what type of computation?

Future value of a series of deposits

Types of risks associated with financial decisions may include:

Income risk, personal risk, liquidity risk, inflation risk

Patrick Jones is interested in purchasing a 65" LED TV for his living room. Patrick knows that right now the TV will cost approximately $500. He is not sure he can afford this TV right now but is worried that if he waits, the cost of the TV will rise to $800. Which type of risk is Patrick worried about?

Inflation Risk

Funds set aside for retirement is an example of a(n) _____________

Investment

Which category of a home file includes stock and bond purchase documents?

Investment records

A personal balance sheet presents:

Items you own and amounts you owe

Ava Roberts uses a computer to organize her personal financial records and update her budget activities. These activities are an example of:

Money Management

Which of the following would be considered a long-term liability?

Mortgage

Which of the following is the process of making and using contacts to obtain and update career information and find job opportunities?

Networking

Which of the following are considered to be personal financial statements?

Personal balance sheet and cash flow statement

Seventy percent of professionals locate employment positions presently available through networking and:

Personal contacts

Which type of computation would a person use to determine the current value of a desired amount in the future?

Present Value of a single amount

Which of the following is an example of opportunity cost?

Saving money instead of taking a vacation

An interview designed to determine the best candidates for further interviewing is a(n) _____________blank interview.

Screening

The finalists for a job position are invited for a(n) _____________blank interview.

Selection

Which of the following goals would be the easiest to implement and measure its accomplishment?

"Save $50 a month to create a $2,000 emergency fund."

Opportunity costs refer to:

trade-offs associated with money management decisions.

Which one of the following illustrates an insolvent situation?

Assets $40,000; liabilities $60,000

The current financial position of an individual or family is best presented with the use of a:

Balance Sheet

Financial institutions include the following:

Banks, credit unions, insurance companies, investment companies

Which of the following documents would most likely be stored in a safe-deposit box?

Birth Certificates

The problem of bankruptcy is associated with misuse of credit in the _____________blank component of financial planning.

Borrowing

The fed refers to:

Federal Reserve System

The study of how wealth is created and distributed is:

Economics

Compared to a job, a career:

Requires continues training

Fintech involves which of the following? Apps, websites, and mobile devices for banking. Artificial intelligence, robotics, and drones. Blockchain, crowdfunding, and cryptocurrencies.

All are correct

When negotiating your salary which of the following tasks should be undertaken? Research comparable positions Prepare evidence of contributions Plan for appropriate timing and message Emphasize your value to the employer

All are correct

Which of the following are benefits to financial literacy? Increased effectiveness in obtaining, using, and protecting financial resources. Expanded control of financial activities, Avoidance of excessive debt, bankruptcy, and dependence on others for financial security

All are correct

Which of the following economic conditions can affect career opportunities? High interest rates decreased global demand for goods and services price increases

All are correct

A common deduction from a person's paycheck is for:

Social security taxes

Total earnings of a person minus the deductions for taxes and other items is called:

Take-home pay

A _____________blank cover letter is designed to compare your experiences with the job requirements side-by-side

Targeted

The annual price increase for most goods and services measured by the Bureau of Labor Statistics is called _____________

The consumer price index

The success of a financial plan will be determined by:

The individuals financial habits

The amount of interest is determined by multiplying the amount in savings by the:

annual interest rate and the time period.

Increased consumer spending will usually cause:

higher employment levels

Higher consumer prices are likely to be accompanied by:

higher interest rates.

The term networking refers to:

making and using contacts to obtain and update career information.