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