IA1 Financial Literacy Study Guide

What is true about financial planning?

• Only short term goals are important

• Once you have a plan, you shouldn’t need to revise it

• Financial plans should be reviewed on a regular basis

• All of the ABOVE

What is true about emotions and financial plans?

• you should always be in a good mood

• you should always be in a bad mood

• emotions have NO impact on financial plans

• do anything you can to leave your emotions out of your financial decisions

What are ADVANTAGES to Shared decision making?

• Multiple viewpoints

• Discussing the pros and cons of the decision

• Creating a less impulsive, emotional decision

• ALL of the above

How often should you review your financial goals?

• On your birthday

• Every 10 years

• Multiple time a year

• Every 2-5 years

The following: Privately owned businesses, Profits and Market economies are characteristics of:

• Capitalism

• Socialism

• Social Politics

• Communism

A Laissez-faire economy has this trait

• very few government rules

• many government rules

• an organized, protected economy

• a combination of rules and freedom

Economic resources are:

• Abundant

• Controlled by society

• Controlled by the government

• Limited

In a capitalist system, what are the goods and tools that are used to make products?

• Capital

• Labor

• Synthetic resources

• None of the above

Interest rate risks would be LEAST relevant to consider when making what type of purchase?

• When purchasing patio furniture

• When purchasing a sweater

• When purchasing a house

• A. When purchasing airline tickets

The increase or decrease of the price of wood, is an example of which of the following?

• Inflation risk

• Personal risk

• Income risk

• Interest rate risk