Unit 3 Test Review

Front

What is the definition of personal financial planning?

Back

Arranging to spend, save, and invest money to live comfortably, have financial security, and achieve goals

Front

Which of the following is NOT a step in the financial planning process? Determine Your Current Financial Situation, Develop Your Financial Goals, Ignore Your Financial Situation, Review and Revise Your Plan

Back

Ignore Your Financial Situation

Front

What are the beliefs and principles you consider important, correct, and desirable called?

Back

Values

Front

Which of the following is a type of financial risk? Inflation risk, Career risk, Social risk, Health risk

Back

Inflation risk

Front

What is the difference between short-term goals and long-term goals?

Back

Short-term goals take one year or less to achieve; long-term goals take more than five years.

Front

Which of the following is an example of a financial goal? Buying a computer, Going for a walk, Reading a book, Watching a movie

Back

Buying a computer

Front

How does high consumer spending affect the economy?

Back

It creates more jobs and maintains them

Front

Which of the following is a strategy to achieve your financial goals? Plan, Ignore, Procrastinate, Forget

Back

Plan

Front

What is a plan of action in personal finance?

Back

A list of ways to achieve your financial goals

Front

What is the Federal Reserve System?

Back

The central banking organization of the United States