Personal Administration - Test 2

What is a financial goal?

• A target for your business

• An objective or milestone that you want your money to cover at a specific time.

• A plan for retirement

• A budget

Select all that apply to the types of investments

• Stocks

• Internet

• Bonds

• Annuities

What is an insurance?

• Is a mean of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.

• It is a way to invest your money

• Reduces the risk of loosing your car

What is a budget?

• A plan to estimate loss

• A tool to analyze investments

• A tool used to communicate our goals

• A financial plan of expected cash inflows and outflows (income and expenses)

Select the 2 correct budgeting methods

• Zero based budgeting

• Traffic budgeting

• Traditional budgeting

• Decremental budgeting

When making a budget, a person’s needs should come before their wants

• True

• False

A financial plan is also called

• Tax

• Allowance

• Budget

• Income

A 9th grader makes and sells earrings as a way to earn extra money. The money she gets is considered _______.

• Income

• Need

• Savings

• Want

If an expense can be cut from your budget to save money, it is considered a ______.

• Need

• Want

• Income

• Savings

Preparing a budget includes

• Only listing your expenses

• Only listing your income

• Expenses, income and debts

• Only listing your debts