BM 2B Unit 8 Quiz

Which situation BEST describes saving for a long-term goal?

• Saving to start a business at retirement

• Saving to pay for household expenses

• Saving to go on vacation

• Saving to make a student loan payment

Which situation BEST describes saving for a short-term goal?

• Saving to buy a new car

• Saving to pay next month's mortgage payment

• Saving for a family member's college tuition

• Saving for retirement

Which situation BEST describes saving for a mid-term goal?

• Saving for health insurance premium payments

• Saving to permanently eliminate all debt

• Saving for a down payment on a first house

• Saving to buy groceries on the weekend

Which description forms the basis for determining one's financial goals?

• Your personal budget

• Your priorities

• Your cash projections

• Your career

Which term describes the fee that banks pay to customers with savings accounts?

• Debit

• Cash Flow

• Interest

• Bond

Garrison dreamed of buying a large mansion by the ocean, where he could take long walks on the beach. He set a personal savings goal of $12M, but based on his income and current savings, he realized it would take several hundred years to earn enough to buy the mansion. Which aspect of the SMART goal framework caused Garrison to reconsider his goal?

• Specific

• Measurable

• Achievable

• Timely

For the past 10 years, Janis has wanted to own a second house near her family. To meet this goal, she determined that she'd need $250,000, but she's unsure how to break the goal down any further, and every year that goes by, she's nowhere closer to meeting her goal. Which question from the SMART goal framework should Janis MOST likely focus on?

• Is it specific?

• Is it measurable?

• Is it achievable?

• Is it timely?

Carl is new to financial planning and goal making, but one thing is clear to him: he wants to save a lot more every month. With his current income, he's not sure if it will be possible. He'd like to achieve this goal beginning next month, but again he's not sure if it can happen. Which question from the SMART goal framework should Carl MOST likely focus on?

• Is it specific?

• Is it measurable?

• Is it achievable?

• Is it timely?

Which is the recommended way to structure financial goals?

• based on salary

• based on time

• based on debts

• based on approach

Kevin Zhang is the founder of Kreator ecommerce, a successful online sales platform. When Kevin encourages young entrepreneurs to focus on their passions and avoid the "shiny object syndrome," what does he mean?

• Avoid offering a product or service that only meets a single need

• By staying passionate, the entrepreneur can remain successful

• Avoid get-rich quick opportunities

• Treat existing customers as well as you treat new ones