Personal Financial Planning Quiz

What is the process of managing your money to achieve personal economic satisfaction?

• Personal Financial Planning

• Financial Planning Process

• Financial Opportunity Costs

• Time Value of Money

What is the first step in the six-step procedure for Financial Planning?

• Develop your financial goals

• Identify alternative courses of action

• Determine your current financial situation

• Evaluate your alternatives

What are the advantages of Personal Financial Planning?

• All of the above

• Sense of freedom from financial worries

• Improved personal relationships

• Increased effectiveness in obtaining, using and protecting financial resources

What is the term used to describe what you give up when you make a financial choice?

• Interest

• Time Value of Money

• Opportunity cost

• Principal

What is the future value of a single amount based on?

• Interest rates and principal

• Principal and time period

• Time period and present value

• Interest rates and time period

What are some components of Personal Financial Planning?

• Obtaining and borrowing

• Planning and investing

• Saving and spending

• All of the above

What is a formalized report that summarizes your current financial situation and recommends future financial activities?

• Insurance protection

• Financial planner

• Money management software package

• Financial plan

What should you do to implement your financial plan?

• Spend beyond your income

• Ignore tax and investment alternatives

• Have appropriate insurance protection

• Avoid saving and investing

What is the term used to describe the current value of a future amount based on a certain interest rate and time period?

• Discounting

• Present value

• Compounding

• Future value

What are the influences on Personal Financial Planning related to life situation and personal values?

• Forces of Supply and Demand and prices

• Economic conditions and interest rates

• Adult life cycle stage and values

• Global marketplace influences