Financial Management

finance

Adrienne had little savings, so she knew she would have to ________ the purchase of her car

equity

Alex's motorcycle is worth $5,000. He has $3,500 in ________ in the motorcycle

D- Gender

All of the following are important in choosing a career except a) compensation b) benefit packages c) interests d) gender

net worth

Amy's dad added up her assets and subtracted her liabilities to determine her ________

personal finance

Bailey wants to learn more about financial issues that can affect her life. She is learning about ________

liability

Ben listed the remaining $1,500 he owes on his motorcycle as a ________

opportunity cost

Cathy wanted to spend the evening at the movies with friends instead of filling her car's gas tank. With this decision she incurred an ________

risk

Ethan bought the least insurance coverage on his car. He is taking a ________ that if his car is damaged the insurance will cover all costs to get it repaired

interest

George noticed that the credit card company charged 18% ________ each month

money management

Good ________ would help Michelle be prepared for extracurricular activities expenses

A- Winning the lottery

Good financial planning can help you achieve all of the following goals except a) winning the lottery b) buying a car c) learning a new skill d) funding your retirement

A- tax purposes

Good record keeping is important for a) tax purposes b) calculating net worth c) estate planning d) young children

personal financial plan

Grace wants to have financial success, so she developed a

liquity

Hannah needed $150 by next week to pay for a new dance team warm-up suit. She looked at her ________ to determine her ability to pay for the warm-up suit by the due date

D- More, more

In general, the ________ education and training you get, the ________ you will earn in your lifetime a) more, less b) less, less c) less, more d) more, more

C- liquidity

In general, the higher the risk of a particular investment the higher the potential a) debt b) return c) liquidity d) record keeping

budgeting

Jack planned his spending and saving for the next three months by ________ his money

credit management

John received a credit card application in the mail. His parents talked with John about good ________ before he applied for credit

A- Cash

Liquid assets are those possessions that can be readily and easily converted to a) cash b) liquid c) stocks d) bonds

C- 0

Most people in the United States save ________ percent of their income

D- 20

People should begin planning for retirement at age a) 50 b) 40 c) 30 d) 20

asset

Ricky listed his motorcycle as an ________ on his bank loan

liquid asset

Ryan used money from his savings account for a down payment on an ATV. Money in his savings account is an example of a ________

income

Sarah makes $1,120 per month at her job and receives $50 per month in allowance. The $1,170 per month is listed as ________ on her financial plan

A- About $225,000

The median home price in the United States for 2006 was a) about $225,000 b) more than $500,000 c) about $150,000 d) less than $ 125,000

A- stocks and bonds

The most common investments include a) stocks and bonds b) stamp collections c) rare automobiles d) oil paintings

personal financial planning

The process of ________ will help James plan his financial future

C- Personal financial planning

The process of planning every aspect of your personal finances is known as a) budgeting b) money management c) personal financial planning d) financial security administration

payment terms

Tom's parents went over the ________ of the credit card with him so that he would fully understand when his payment would be due if he used the card

D- All of the above are financial goals

Which of the following goals is not a financial goal a) give $100,000 to charity b) earn a college degree c) retire with $ 1,000,000 in assets d) all of the above are financial goals

A- insurance

Which of the following is a key component of risk management? a) insurance b) investments c) cash d) jewelry

B- a plan to manage risk

Which of the following is not a component of a financial plan? a) a plan to manage risk b) a plan to pay utility bills c) a plan for investing d) a plan for retirement

D- car payment

Which of the following is not a source of income? a) wages b) salary c) allowance d) car payment

A- taxes

Your gross pay will be reduced by a) taxes b) car payments c) house payments d) clothing

A- assets and liabilities

Your net worth is the difference between your a) assets and liabilities b) payments and income c) cash inflows and outflows d) liquid assets and long-term assets

bankruptcy

________ is a legal process filed when one is unable to pay bills

real estate

________ is not a very liquid investment because it is not always easy or possible to quickly sell buildings and land

B- height

a person's income may depend on all of the following except? a) career choice b) height c) education d) training

A- 5 percent for 4 years

assume you intend to borrow $5,000. Which of the following financing terms is the best deal? a) 5 percent for 4 years b) 9 percent for 5 years c) 8 percent for 3 years d) 9.5 percent for 6 years

C- housing

consumers tend to spend the most money on which category of goods? a) food b) entertainment c) housing d) clothing