CPA 1
CPA 2
CPA 3
Quiz 1 Terms
Practice Questions
100
Name 2 ways to optimize your sleep schedule
100
The process of acquiring and managing money throughout a person's lifetime
What is personal finance?
100
This reflects the value of the alternative option you have given up by making a financial choice
What is an opportunity cost?
100
How much should you have in an emergency fund?
3-6 months of expenses
100
True or false: "I want to lose ten pounds" is a SMART goal
False. It's specific and measurable, but it is not timely and therefore may not be realistic or attainable.
200
How much sleep does the average 14-24 year old high school or college student require?
9 hours 15 minutes
200
How many steps are in the personal financial planning process?
Seven
200
Monthly income - (monthly savings + monthly expenses) = 0
What does this formula represent?
Zero-based budgeting
200
What is the first step of the financial planning process?
Understanding the client's personal and financial circumstances
200
My monthly income is $2,000. If my monthly expenses average $1,350, what should I save each month for a zero-based budget?
$650
300
A better learning method that involves spacing out the learning over multiple days
What is spaced interval learning (spacing effect)?
300
Name two major subject areas covered in the personal financial planning process
Establishing (lifetime)(financial) goals
Budgeting and saving
Debt management
Risk management and insurance
Investments and portfolio management
Income tax planning
Estate planning
Educational planning
Planning for future retirement needs
Planning during retirement
300
How is net worth calculated?
Assets -- Liabilities
300
This term refers to how accessible assets are. For example, cash is more ____ than money held in an investment account.
What is liquidity?
300
A 30-year mortgage that I make payments on every month is a ____ liability.
What is long-term?
400
A better learning method that results in better retention, involves being forced to recall information from memory, and can be practiced via flashcards or cool practice games Lindsey makes
What is retrieval practice?
400
What is a SMART goal?
Specific; Measurable; Attainable; Realistic; Timely
400
Give an example of an asset and a liability. Is the liability you mentioned current or long-term?
Answers will vary
400
There are four rules of budgeting. List one of them
Give every dollar a job
Embrace your true expenses
Roll with the punches
Age your money
400
I have $6,000 in assets and $10,000 in liabilities. What is my net worth? What is this called?
-$4,000. This is a deficit
500
This occurs when you go to bed and wake up later on weekends than during the week; it is associated with poorer health, worse mood, and increased sleepiness and fatigue
What is social jetlag?
500
What are the two key questions to financial planning?
When will I have "enough" to retire?
How do I ensure that I don't outlive my money?
500
Differentiate between human capital and equity capital
Human capital: the knowledge, skills, creativity, and other personality attributes that you possess, which you can utilize to contribute to the creation of goods and services
Equity capital (personal financial capital): your personal net worth; using your skills, knowledge, personal attributes, and experience to contribute to a business or gov. enterprise in return for compensation
500
What are the two keys to budgeting?
There must be a written plan and a means to monitor/track the plan
500
We may study how to obtain a mortgage in one class, then study homeowner's insurance several sessions later, and finally study the process of purchasing a home several sessions after that. This practice is called _____.
What is interleaving?