Multiple Choice
How many steps are there in a rational decision-making process?
a.7
b.5
c.3
d.4
b. 5
Someone relying on another for financial support
What is a dependent?
A person feels the need for immediate gratification.
What is instant satisfaction?
Savings is _______________.
a. Planning for what to do with one's assets in the event of death
b. When you withdraw yourself from an active working life
c. the amount of money you put aside for future use.
d. using money to create wealth over time and is achieved through investment vehicles
c. the amount of money you put aside for future use.
A detailed estimate of income and expenses for a specific period of time.
What is a budget?
__________refers to a person's beliefs, values, and practices.
a. emotions
b. culture
c. behavior
d. money personality
b. culture
Choosing between two or more options
What is decision-making process?
This is an example of a planned expenditure or purchase.
What is a house?
A personal financial plan includes which elements?
a. financial goals
b. insurance plan
c. cash flow plan
d. all of the above
d. all of the above
To hold yourself accountable for decisions you make.
What is personal responsibility?
Delayed gratification means to ________.
a. resist temptation for an immediate purchase
b. make a purchase without prior planning
c. make a purchase immediately
d. resist saving money
a. resist temptation for an immediate purchase
A set of distinctive traits and characteristics that influence a person's financial ability.
What is money personality?
How are instant satisfaction and delayed gratification related to impulse buying and planned expenditures?
Instant satisfaction = impulse buying
Delayed gratification = planned expenditures
An emergency fund consists of how much money?
a. 1 year of expenses
b. 1 month of expenses
c. 12 to 24 months of expenses
d. 3 to 6 months of expenses
d. 3 to 6 months of expenses
A professional who can help you plan and manage your financial future.
What is a financial planner?
Opportunity cost is _____________.
a. the buying of goods without prior planning
b. the performance of a particular task in exchange for money
c. someone relying on another for financial support
d. an economic concept that represents the benefits you could have received by choosing the alternative
d. an economic concept that represents the benefits you could have received by choosing the alternative
An economic concept that represents the benefits you could have received by choosing the alternative.
What is opportunity cost?
How do social pressure and marketing strategies influence purchasing decisions?
Social pressure is the need to accepted from others.
Marketing is a sales technique.
______________ is a professional who can help you plan and manage your financial future.
a. financial aid officer
b. financial planner
c. bank teller
d. support specialist
b. financial planner
A strategy for how you will spend, save, and invest your money today and into the future.
What is a personal financial plan?
Personal financial responsibility includes which of the following factors?
a. acceptance, credit, awareness, recognition
b. acceptance, communication, acquisition, remembrance
c. accountability, communication, adaptability, situational awareness
d. accountability, credit, acquisition, remembrance
c. accountability, communication, adaptability, situational awareness
Comparing the costs and benefits of a decision to determine the best course of action.
What is cost-benefit analysis?
What are the five steps of the decision-making process?
Step 1-State the problem
Step 2- Gather information
Step 3- Evaluate the options
Step 4- Make a decision
Step 5- Implement the decison
A business financial plan typically works by outlining a variety of financial statements for a time period of ___.
a. 1 to 2 years
b. 1 to 3 years
c. 3 to 5 years
d. none of the above
c. 3 to 5 years
The responsibility of financial planners to put the needs of their clients first.
What is fiduciary responsibility?