Personal Finance Chptr 1+2 ( time value of money, liquidity, financial planning)

Which of the following goals would be the easiest to implement and measure its accomplishment?

"Save $50 a month to create a $2,000 emergency fund."

If inflation is increasing at 4 percent per year, and your salary increases at the same rate, how long will it take your salary to double?

18 years

Which of the following is an opportunity to connect with several prospective employers in a short time span? (Hint: It is often held at local university campuses or convention centers.)

A career fair

Sophia Martin wants to travel after she retires as well as pay off the balance of the loan she has on the home she owns. Which step in the financial planning process does this situation demonstrate?

Developing her financial goals

A question associated with the saving component of financial planning is:

Do you have an adequate emergency fund?

A chronological résumé presents your education and experience based on:

a reverse time sequence.

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

a time frame.

A career objective is:

best included in your cover letter.

Future value calculations involve:

compounding.

The study of how wealth is created and distributed is:

economics.

When considering career training and skill development, what factors influence future income:

education level. field of study. experiences. job market.

A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends future financial activities is a(n):

financial plan.

A person's résumé should generally be limited to:

one page.

Seventy percent of professionals locate employment positions presently available through networking and:

personal contacts.

Changes in personal, social, and economic factors make it necessary to:

review and revise your financial plan.

The uncertainty associated with every decision is referred to as:

risk.

Time value of money refers to changes in consumer spending when inflation occurs.

False

developing and using a budget is part of the "obtaining" component of financial planning

False

If a person deposited $75 a month for 5 years earning 7 percent, this would involve what type of computation?

Future value of a series of deposits

Developing and using a budget is part of which component of financial planning?

Planning

Compared to a job, a career:

Requires continued training.

The success of a financial plan will be determined by:

the individual's financial habits.

A mentor is an experienced employee who serves as a teacher and counselor for a less experienced person in a career field.

true

An elevator speech is a short, persuasive, focused summary of your unique experiences and skills used when networking.

true

Continuing career education to update your knowledge can be through formal or informal methods.

true

The advantages of personal financial planning include:

-Increased effectiveness in obtaining, using and protecting your financial resources -Increased control of your financial affairs by avoiding excessive debt and bankruptcy -Improved personal relationships resulting from better communicated financial decisions

Guidance tests may help to identify a satisfying career by measuring:

abilities. interests. personal qualities.

The stages in the family and financial needs of an adult are called the:

adult life cycle.

A major activity in the planning component of financial planning is

anticipating spending through budgeting.

Creativity, problem-solving skills, and physical dexterity are examples of:

aptitudes.

The ability to readily convert financial resources into cash without loss of value is referred to as:

liquidity.

As Olivia Wilson plans to set aside funds for her young children's college education, she is setting a(n) ____________ goal.

long-term

You may identify a satisfying career using guidance tests that:

measure interests, abilities, and personal qualities.