Personal Financial Management

What happens to your tax liability with proper financial planning?

You can __________________ your tax liability through proper financial planning.

• maximize

• share

• minimize

• prepare

What is the third primary decision when it comes to making financial decisions (along with spending and saving)?

Financial choices revolve around three primary decisions: spending, saving, and

__________ .

• sharing

• exercising

• confirming

• questioning

Crystal wants the latest limited edition of Vogue magazine, but she needs to buy food for her family. Crystal prioritizes her needs over her wants. What will she most likely do?

• A. Purchase the groceries, because that is her need.

• B. Purchase the magazine, because it is a limited edition that she may not see again.

• C. Purchase the magazine before it becomes outdated.

• D. Purchase cheaper grocery items so she can still afford the magazine.

• E. Purchase neither groceries nor the magazine.

What is the first step in financial planning?

• A. maintaining a log of all your expenses

• B. understanding what you want

• C. preparing a balance sheet

• D. attaching a goal cost to every goal

• E. attaching a time frame to every goal

Joshua wants to set certain mid-term goals for himself. What kind of time frame would his goals need to qualify as mid-term goals?

• A. less than one year

• B. five to eight years

• C. one to two years

• D. one to five years

• E. more than 10 years

An investment bank has a position vacant for the post of finance manager. Which three skills will they look for in their candidates? (select all correct answers)

• creativity

• decision making

• teamwork abilities

• quantitative data analysis

• selling skills

What helps in determining the reliability of a person with regard to repaying debts?

• A. amount of cash

• B. number of bank accounts

• C. credit score

• D. number of tax deductions

• E. inflation rate

Match the different sources of payments to their descriptions.

Match the activities to the type of income they generate.

Distinguish between the costs of having a basic checking account and an interest-bearing checking account.