Pearson ch 1 test

Lindsey got her first paycheck and noticed that she took home only $62.45 this week. She worked 10 hours and made $8 an hour. How much did her employer withhold from her paycheck?

Personal financial planning is:

• a process of managing your money to achieve personal economic satisfaction.

• a method to increase your expenses.

• a way to avoid all financial risks.

• a strategy to spend all your income immediately.

What do you stand to gain from your knowledge of personal finance?

• Improved financial decision-making

• Better budgeting skills

• Increased savings

• All of the above

Assuming the movie will cost Jacob $10, what is his opportunity cost of going to the movie?

• $10

• The value of the next best alternative forgone

• $0

• The time spent watching the movie

Which entrepreneur began a company on a "shoe string" budget and what education or training did he or she have before beginning a business?

• Steve Jobs - No formal education

• Oprah Winfrey - Degree in Communications

• Bill Gates - Dropped out of Harvard

• Sara Blakely - Degree in Communications

Michael is thinking about buying a car and is comparing two vehicles. One gets 14 miles per gallon (mpg) and the other gets 28 mpg. Assuming he drives 4,000 miles per year and gas is $3 a gallon, how much money would he save by buying the more fuel-efficient car?

• $300

• $400

• $500

• $600

What three categories of goals should you plan for?

• Short-term, Medium-term, Long-term

• Personal, Professional, Social

• Financial, Health, Education

• Daily, Weekly, Monthly

Which certifications indicate a certain level of training and expertise?

• CFP

• CPA

• Both CFP and CPA

• None

Does their area of expertise match your needs? Obviously you want an advisor who can help you meet your own goals.

• Yes, their expertise matches my needs.

• No, their expertise does not match my needs.

Can they provide you with references from current clients? A good advisor should have many satisfied clients.

• Yes, they can provide references.

• No, they cannot provide references.