CCP-101 Week 07 Review Quiz v.25

What are the five steps in the financial planning process?

• Set goals, spend less, save more, invest wisely, review progress

• Evaluate financial health, define goals, develop a plan, implement, review

• Spend wisely, invest aggressively, save sporadically, review occasionally

• Earn more, spend freely, save occasionally, review rarely

Which of the following is NOT a key to achieving financial success?

• Spending less than what is earned

• Building an emergency fund

• Accumulating debt for unnecessary purchases

• Saving and investing for the future

What is the term for the degree to which one can fully meet current financial obligations and feel secure in their financial future?

• Financial literacy

• Financial capability

• Financial well-being

• Financial success

What does net worth represent?

• Total earnings in a year

• Total debt accumulated

• Financial condition on a specific date

• Total expenses in a month

Which of the following is NOT a type of asset?

• Cash equivalents

• Automobile loans

• Investment assets

• Tangible assets

What is NOT a consequence of failing to pay debts?

• Decreased credit score

• Increased borrowing capacity

• Wage Garnishment

• Legal problems 

What is not a good strategy to prioritize debt for repayment?

• By loan length

• By debt amount

• By alphabetical order

• By interest rate

What strategy involves paying off the debt with the smallest amount owed first?

• Debt avalanche

• Debt consolidation

• Debt snowball

• Debt negotiation

Which of the following is NOT a wealth-building principle?

• Paying credit card balances in full each month

• Spending more than earned

• Saving by paying oneself first

• Participating in a retirement plan at work

What is the term for the value of the next best alternative that must be forgone?

• Opportunity cost

• Trade-off

• Net worth

• Standard of living