Banking & Finance- Ch 28 Quiz

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

• Financial Goals

• Investments

• Money

• Savings

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

• build wealth

• reach your goals

• save for your retirement

• stay out of debt

The financial planning process has ___ steps.

• four

• five

• six

• seven

The first step in the financial planning process involves _____.

• determining your current situation

• developing financial goals

• paying down your debt

• starting a savigns plan

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

A general increase in the cost of goods and services is called _____.

• bloat

• inflation

• economic upturn

• escalation

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

• asset valuation

• cash flow

• flexibility

• liquidity

Diversification of your assets is one way to _____risk.

• eliminate

• evaluate

• limit

• maximize

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

• trade down

• trade in

• trade off

• trade up

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