Intro to Business Chapter 28

Personal finance refers to all the things in your life that involve ___________.

• financial goals

• investments

• money

• savings

The financial planning process has __________ steps.

• four

• five

• six

• seven

The last step in the financial planning process involves _____________.

• identifying possible courses of action

• monitoring your progress

• putting the plan into action

• reviewing and revising your plan

The ability to easily convert your financial resources into cash without loss in value is called ___________.

• asset valuation

• cash flow

• flexibility

• liquidity

What you give up when you make one choice instead of another is sometimes called a ___________.

• trade down

• trade in

• tradeoff

• trade up

Planning your personal finances is important because it will help you __________.

• build wealth

• reach your goals

• save for your retirement

• stay our of debt

The first step in the financial planning process involves ___________.

• determining your current situation

• developing financial goals

• paying down your debt

• starting a savings plan

A general increase in the price of goods and services is called ____________.

• bloat

• inflation

• economic upturn

• escalation

Part of the __________ of going to college is the money you would have made at a full-time job.

• alternative cost

• differential cost

• estimated cost

• opportunity cost

Which is the best definition of personal financial planning?

• spending, saving, and investing money to enjoy life and achieve financial security.

• Listing ways to achieve your short-term and long-term financial goals.

• thinking about your attitudes toward money.

• using available sources of financial information.