Personal Finance Chapter 3

False

A new car is an example of a need.

B. An annuity

A series of equal regular deposits is called

True

A series of equal regular deposits is called an annuity.

A. Compounding

Eating interest on previously earned interest is called

B. Long-term goals

Financial goals that are more than 5 years off are called

D. Services

Hairstyling and book keeping are examples of

False

Interest rates provide an indicator of how well people are living.

B. Short-term goals

Saving for vacation next summer or paying off small debts by the end of the year are example of

False

Saving money for the holidays is an example of a long-term goal.

A. Personal Financial planning

Spending, Saving, and Investing to have the kind of life you want and financial security can be achieved by

True

Supply and demand are examples of market sources.

True

The Federal Reserve System is the central banking system of the U.S.

C. Supply

The amount of goods and services available for sale is called

D. Federal Reserve System

The central banking organization of the the U.S. is called

True

The first step of financial planning is to determine your current financial status.

True

The main cause of inflation is an increased demand without an increase in supply.

False

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

D. Opportunity cost

The trade off made by making one choice instead of another is commonly referred to as

C. Economy

The ways in which people make, distribute, bad use their goods and services is called

False

You can buy an touch intangible items.