Chapter 2 Section Review

Front

A(n) ________ involves specifying financial goals and describing in detail the​ spending, financing, and investing plans needed to reach those goals.

Back

personal financial plan

Front

Which of the following is not a component of a financial​ plan? A plan to pay utility bills, A plan to manage risk, A plan for investing, A plan for retirement

Back

A plan to pay utility bills

Front

A solid financial plan addresses how many key​ components?

Back

7

Front

A good financial plan can be compared to​ what? A compass, A​ builder's blueprint, A portfolio, A complicated quilt

Back

A​ builder's blueprint

Front

A personal financial plan should include​ ________. Options: spending plans, financial goals, investing plans, All of the above

Back

All of the above

Front

Which of the following is an accurate financial statistic about​ millennials?
- About half of millennials spend money on the latest electronic gadget.
- About​ 30% of millennials spend money on eating at trendy restaurants.
- The majority of millennials spend money on taxis and Ubers.
- Less than half of millennials spend money on clothing they​ don't necessarily need.

Back

The majority of millennials spend money on taxis and Ubers.

Front

The purpose of a budget is to plan your spending and saving, considering your income level, so that you can meet your ________.

Back

needs and wants

Front

Which of the following is NOT a step in creating a​ budget? identifying your expenses, determining your net worth, considering the effect of taxes, prioritizing your financial goals

Back

prioritizing your financial goals

Front

Which of the following questions would you answer while establishing your net worth in the budgeting​ process? How can I decrease the amount of income tax I​ owe? How much money do I usually spend in a​ month? How much income can I expect each​ month? How much money do I have in the bank​ now?

Back

How much money do I have in the bank​ now?

Front

You can increase your net worth by increasing your​ ________ and/or decreasing your​ ________.

Back

assets; liabilities