Personal Finance

What does personal finance include?

• Only insurance and planning

• Only budgeting and spending

• Budgeting, insurance, planning, saving, investing, and spending

• Only investing and saving

What happens to the demand and price of a good or service when supply goes up?

• Demand decreases and price increases

• Demand increases and price decreases

• Demand and price decrease

• Demand and price increase

What is the first step in financial planning?

• Determine current financial situation

• Identify your options

• Develop financial goals

• Evaluate alternatives

What is a need according to financial planning?

• A luxury item

• A financial investment

• Something you must have for survival

• Something you desire to have

What is the purpose of a budget?

• To plan spending based on income and expenses

• To plan luxury expenses

• To invest in stocks

• To track only income

What is a Certificate of Deposit (CD)?

• A type of loan for purchasing homes

• A credit card service

• A checking account that does not earn interest

• A type of savings account with a fixed interest rate for a set period

What does the Law of Supply and Demand state?

• Prices are unrelated to supply and demand

• Prices are inversely related to the supply

• Demand does not influence prices

• Prices of goods and services are directly related to the amount of that product and demand

What is a Roth IRA?

• A retirement account where contributions are taxed and withdrawals are tax-free

• A non-retirement savings account

• A retirement account where contributions and withdrawals are taxed

• A high-risk investment fund

What is the main function of a commercial bank?

• To provide loans and accept deposits

• To issue money only

• To insure deposits only

• To regulate the stock market

What is the consequence of a bounced check?

• It earns interest

• It is certified by the bank

• It indicates insufficient funds in the account

• It increases the account balance