Personal Finance Chapter 3

The first step of financial planning is to determine your current financial status.

• True

• False

A new car is an example of a need.

• True

• False

Saving money for the holidays is an example of a long term goal.

• True

• False

The main cause of inflation is an increase in demand without an increase in supply.

• True

• False

The time value of money is the amount your original deposit will be worth in the future, based on earning a specified interest rate over a set period of time.

• True

• False

You can buy and touch intangible items.

• True

• False

Supply and demand are examples of market forces.

• True

• False

Interest rates provide an indicator of how well people are living.

• True

• False

A series of equal, regular deposits is called an annuity.

• True

• False

Federal Reserve System is the central banking system of the United States.

• True

• False