PFLE Unit 1

Personal Finance is described as (a)   and (b)   .

• Money Management
• Financial Decision Making
• Budgeting for vacations
• Investing in stocks
• Saving for a new car

What is the purpose of financial planning?

• To create a strategy for achieving financial security

• To record daily income and expenses

• To list monthly income sources

• To plan for impulsive purchases

If you decide to buy a $2.00 snack every school day for one year instead of bringing a snack from home, what is the opportunity cost? Assume you are in school for 38 weeks and bringing a snack from home is free.

• $380.00

• $300.00

• $400.00

• $350.00

Millie listed her jewelry and her vehicle as (a)   on her bank loan and listed her $800 mortgage payment as a (b)   on the same application.

• Asset
• Liability
• Equity

• Income

It is more important to prioritize (a)   such as basic living expenses and debt payments over (b)   like entertainment and luxury purchases when managing personal finances.

• needs
• wants
• hobbies
• vacations
• subscriptions

By regularly adding money to their savings account, a person is enhancing their ______.

• liquidity

• debt

• expenses

• liabilities

Which of the following is an example of "cash inflow"?

• Cam buying groceries.

• Cam receiving a paycheck.

• Cam paying his rent.

• Cam investing in a mutual fund.

Short term objectives are typically accomplished within ____. Options: 3 yrs., 2 yrs., 1 yr.

• 1 yr.

• 3 yrs.

• 2 yrs.

• 6 months

Which investment option is considered the riskiest for a $10,000 investment?

• Putting your money in a fixed deposit account

• Investing in a new tech start-up

• Buying a second-hand car

• Investing in real estate

Juan's monthly truck payment is considered a ______.