PF CH 1

The stages in the family situation and financial needs of an adult is known as the

• Family life cycle

• Financial life cyle

• Personal financial planning

• Adult life cycle

The ideas and principles that a person considers correct, desirable, and important are know as

• Values

• Norms

• Perceptions

• Rules

The study of how wealth is created and distributed is known as

• Accounting

• Finance

• Economics

• Capitalism

_________ is a rise in the general level of prices.

• Inflation

• Price skimming

• Price gouging

• Deflation

With an annual interest rate of 3%, prices will double in ____ years.

• 12

• 24

• 15

• 20

Interest rates represent

• the amount spent

• out of pocket expenses

• The cost of money

• the amount saved

Goals that will be achieved within a year to so are called…

• Long-term goals

• Intermediate goals

• Short-term goals

• Continuous goals

An example of an intermediate goal is

• Paying off a small debt

• Paying off a car loan

• Saving for a trip to the Grand Canyon

• Saving for your child’s education

Which of the following is NOT part of the SMART goal-setting approach?

• Attainable

• Time-based

• Measurable

• Action-Oriented

Every financial decision requires you to give up something in order to get something that you consider more desirable. What you give up is known as:

• time value of money

• Compounding

• Marginal utility

• Opportunity cost