pfin chapter 1 quiz

True

A person who has $2,000 monthly income and spends $1,800 monthly has an average propensity to consume of 90%.

make financial decisions

A personal computer could not be used to

wealth

A primary determinant of your quality of life is

False

About 20% of Americans say retirement planning is their most pressing financial concern.

83.3%

Becky graduated with a master degree in Personal Financial Planning. After working two years in a small financial planning firm, Becky earns $60,000 annually and saves $10,000 a year. What is her average propensity to consume?

False

Insurance provides a way to make money on unfortunate events.

estate

Martha is 80 and has a very high net worth. Her most important financial concern is probably her

True

Mutual funds are examples of financial assets.

False

Spending for your child's private-school education is an example of deferred consumption.

percentage of income spent for current consumption

The average propensity to consume refers to the

stagnation

The four stages of an economic cycle would not include

the party around which the personal financial environment is centered

The individual consumer is

career

The most important financial planning for young people concerns

government, consumers, and business.

The three key groups in the economic environment are

Make a $12,000 down payment on an automobile in 4 years

Which of the following goals is stated in a way that is most useful for developing a financial plan?