PFR Ch 4 Review

Which of the following is an example of a basic need?

• Food

• Bed

• Bathroom

• House

The desire for items other than basic needs are known as

• Needs

• Must haves

• food

• wants

A personal net worth statement details what?

• income and expenses

• assets and liabilities

• disposable income

• savings

Which of the following always increase in value?

• assets

• land

• stocks

• none of these

Which of the following is an example of a fixed expense?

• electric bill

• food bill

• rent

• entertainment

An unfavorable variance occurs when

• Gas prices increase

• Your rent goes up

• Your estimated expenses are more than your actual

• Your estimated expenses are less than your actual

Which of the following is an example of a soft-copy electronic record?

• A budget produced on a legal pad

• A spreadsheet saved to your hard drive

• A net worth statement on a napkin

• A budget written on a pillow

Financial planning looks to the

• yesterday

• present

• future

• past

Financial goals support what

• personal goals

• workout goals

• daily goals

• sleeping goals

Giving up something now in order to save for something later is known as

• rational buying

• opportunity cost

• delayed gratification

• one marshmallow child