CSM 204 Module 1

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

What is gross income?

Income before expenses are deducted

A person with erratic or seasonal income may need an emergency fund of ________ months or more.

6

Paul Carter is 42 years old, married and has three children, ages 15, 13 and 8. This discussion is a demonstration of what factor in personal financial planning?

Adult life cycle

Evaluating risk associated with making most financial decisions is difficult because of what factor(s)? Inflation risk interest rate risk personal risk liquidity risk.

All the above

The advantages of personal financial planning include: A. Increased effectiveness in obtaining, using and protecting your financial resources throughout your life B. Increased control of your financial affairs by avoiding excessive debt, bankruptcy, and dependence on others. C. Improved personal relationships resulting from well-planned and effectively communicated financial decisions. D. A sense of freedom from financial worries is obtained by looking to the future, anticipating expenses, and achieving personal economic goals.

All the above

A home file should be used for: A) storing all financial documents and records. B) financial records for current needs. C) documents that require maximum security. D) obsolete financial documents. E) records that are difficult to replace.

B) financial records for current needs.

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

Cash flow statement

True or False Economics is the study of using money to achieve financial goals.

False

True or False Furniture, jewelry, and an automobile are examples of liquid assets.

False

If you put $500 in a savings account and make no further deposits, what type of calculation would provide you with the value of the account in 10 years?

Future value of a single amount

Chris Carter needs to store monthly statements from his bank, his credit card company and his savings accounts. Where is the most appropriate place for Chris to store this information?

Home file

Which one of the following is the best example of a long-term goal for a married couple with no children?

Provide for retirement income

Jeremy Allison needs to store the title to his car and his military papers. Where is the most appropriate place for Jerry to store this information?

Safe deposit box

True or False: Reduced spending causes unemployment from staff reduction.

True

The earnings you receive as a saver or an investor reflect:

a risk premium based on length of the savings period

William Davis has a goal of "saving $60 a month for vacation." William's goal lacks:

a time frame

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

annual interest rate

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

first

Payments that do not vary from month to month are ________ expenses.

fixed

Which one of the following cash outflows should be listed first on a Cash Flow Statement?

fixed expenses

The time value of money refers to:

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

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

liquidity risk

The main responsibility of The Fed is to:

maintain an adequate supply of money.

Discretionary income is:

money left over after paying for housing, food, and other necessities.

The 50/30/20 financial rule of thumb suggests that 50 percent of income be used for:

necessities.

A person's net worth would increase as a result of:

reducing the amounts you owe to others.

The financial planning process concludes with efforts to

review and revise your financial plan

The 50/30/20 financial rule of thumb suggests that 20 percent of income be used for:

savings

True or False Opportunity costs refer to what a person gives up when making a choice.

true

The 50/30/20 financial rule of thumb suggests that 30 percent of income be used for:

wants


संबंधित स्टडी सेट्स

DOCUMENTATION: MLA-Style Works Cited

View Set

PED101 "Get Fit Stay Well" Ch. 8 HW & QUIZ

View Set

Something Something Statistics Ans

View Set

Ch 2 - Managing the MIS Function

View Set

Appraisal Subject Matter Electives

View Set