Personal Finance Ch. 1 Test Review

Long term goals take over ______ to complete.

• 5 years

• 3 years

• 2 years

• 4 and a half years

Short term goals take less than ______ to complete.

• 5 years

• 3 years

• 2 years

• 1 year

Poor Credit = _____ Interest Rates

• Lower

• Higher

• Doesn't matter

• Stays the same

The _______ is responsible for regulating financial activities.

• White House

• Government

• The Federal Reserve

• The SEC

There are ___ steps in the financial planning process.

• 4

• 5

• 6

• 7

What is an example of a short-term financial goal?

• Building an emergency savings fund

• Investing in a retirement plan

• Paying off a long-term loan

• Saving for a child's college education

Inflation can be caused by an increase in ________, but not an increase in ________.

• Exports, Imports

• Trade Deficits, Tariffs

• Supply, Demand

• Demand, Supply

What is it called when imported goods exceed in value more than exports?

• Trade Deficit

• Trade Surplus

• Import

• Export

What are the 3 main financial decisions people can make?

• Opportunity Cost, Time Value of Money, Assets

• Bankruptcy, Liquidity, Debt

• Health Insurance, Life Insurance, Retirement

• Spending, Saving, Sharing

What is one personal factor that influences spending/saving?

• Age

• Inflation

• Income

• Interest Rates