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.