EXERCISE 2.3 - Putting the Early Evidence Together

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Making financial decisions related to income involves all of the following except:

Taking

The problem of bankruptcy is associated with overuse and misuse of credit in the _____ component of financial planning.

Borrowing

Present value computations are also referred to as:

Discounting

Financial plans are only created by financial planners.

False

Intermediate goals are usually achieved within the next year or so.

False

Which of the following best describes the concept of the time value of money?

Increase in amounts of money as a result of interest earned

Changes in the cost of money is referred to as

Interest rate risk

The tangible and intangible factors that create a less than desirable situation is referred to as

Personal risk

Personal financial planning is the process of managing your money to achieve personal economic satisfaction.

True

Retirement planning includes thinking about your housing situation, recreational activities, and possible volunteer or part-time work

True


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