1. (TCO 1) A(n) _____ summarizes your current financial situation, analyzes your financial needs, and recommends a direction for your financial activities. (Points : 1) | insurance prospectus statement budget investment forecast financial plan |
(TCO 1) The main goal of personal financial planning is:
Saving and investing for future needs
Reducing a person's tax liability
Achieving personal economic satisfaction
Spending to achieve financial objectives
Saving, spending, and borrowing based on current needs
(TCO 1) The ability to convert financial resources into usable cash with ease is referred to as:
Bankruptcy.
Liquidity.
Investing.
Saving.
Opportunity cost
(TCO 1) Brad Opper has a goal of "saving $50 a month for vacation." Brad's goal lacks:
Measurable terms.
A realistic perspective.
Specific terms.
The type of action to be taken.
A time frame.
(TCO 1) Opportunity cost refers to: money needed for major consumer purchases. what a person gives up by making a choice. the amount paid for taxes when a purchase is made. current interest rates. evaluating different alternatives for financial decisions.
(TCO 1) If a person deposited $50 a month for 6 years earning 8 percent, this would involve what type of computation? simple interest future value of a single amount future value of a series of deposits present value of a single amount present value of a series of deposits
(TCO 1) Which type of computation would a person use to determine current value of a desired amount for the future? simple interest future value of a single amount future value of a series of deposits present value of a single amount present value of a series of deposits
(TCO 1) If inflation is increasing at 3 percent per year, and your salary increases at the same rate, how long will it take your salary to double?