Chapter 2 - Financial Algebra

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

• individual retirement savings plan

• personal financial plan

• personal debt management plan

• individual investment strategy

Tags

CCSS.HSA.CED.A.3

Which of the following is NOT a key component addressed by a solid financial plan?

• Risk management

• taxes

• investment

• education

A personal financial plan focuses on how to accumulate and grow wealth, but it will not help you provide for unanticipated financial emergencies.

• True

• False

Each component of a personal financial plans involves making a set of personal decisions.

• True

• False

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

• Needs and wants

• immediate needs

• long-term dreams

• intermediate financial goals

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.CED.A.3

The process of forecasting future expenses and incomes is called ________.

• personal financial planning

• equity assessment

• liability analysis

• budgeting

Tags

CCSS.7.EE.B.4

Net worth is determined by subtracting an individualʹs liabilities from his or her ________.

• income

• equity

• assets

• liquidity

Tags

CCSS.HSA.CED.A.4

Wages earned and allowance are two types of _________.

• equity

• liabilities

• income

• interest

Having a(n) ________ is the major means by which an individual saves money, builds wealth, and acquires assets.

• net worth

• income

• equity

• asset

Tags

CCSS.HSS.MD.B.5

If you find that you donʹt have enough money to cover your immediate needs, then you need more ________.

• liquidity

• net worth

• assets

• liabilites