Personal Financial Planning

Multiple Choice

Personal financial planning involves

• spending

• saving

• investing

• it involves all three

Multiple Choice

How do you begin your financial planning process

• determine your current financial situation

• identify your options

• evaluate your alternatives

• create a plan of action

Multiple Choice

The last step in the financial planning process is to

• develop financial plans and strategies to achieve goals

• use financial statements to evaluate results of plans and budgets, taking corrective action as required

• implement financial plans and strategies

• redefine goals and revise plans and strategies as personal circumstances change

Multiple Choice

Goals that are set to be achieved in more than 5 years are

• short term

• intermediate

• long term

Multiple Choice

Food and shampoo are examples of

• consumable goods

• durable goods

• intangible goods

Multiple Choice

Financial goals should be realistic, specific, in a clear time frame, and help you decide what type of action to take

• true

• false

Multiple Choice

Which describes supply

• consumer point of view

• price high supply high

• price high supply low

Multiple Choice

Which describes demand

• producer point of view

• price high demand high

• price high demand low

Multiple Choice

Which influences your personal financial planning

• life situations

• personal values

• Global influences

• inflation

• all of the choices are influences

Multiple Choice

Making a choice to either drive or fly to California is an example of

• trade off

• opportunity cost

Multiple Choice

Missing the scenery along the way by deciding to fly instead of drive is an example of

• trade off

• opportunity cost

Multiple Choice

The calculation for your debt ratio

• net worth / total assets

• total assets / net worth

• total liabilities / total assets

• total assets / total liabilities