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Managing Your Personal Finances and Financial Influences

Total questions: 17

Worksheet time: 9mins

Name
Class
Date
1.

Which is the best definition of personal financial planning?

a)

spending, saving, and investing money to enjoy life and achieve financial security.

b)

Listing ways to achieve your short-term and long-term financial goals.

c)

thinking about your attitudes toward money.

d)

using available sources of financial information.

2.

Which term refers to things you want to accomplish?

a)

budgets

b)

risks

c)

expenses

d)

goals

3.

Which is NOT one of the six steps of financial planning?

a)

Develop your financial goals.

b)

Apply for credit.

c)

Evaluate alternatives.

d)

Implement a financial plan of action.

4.

Which term refers to the risk of a general increase in the cost of goods and services?

a)

inflation risk

b)

interest rate risk

c)

liquidity risk

d)

income risk

5.

Which term refers to giving up something by making one choice instead of another.

a)

income risk

b)

personal risk

c)

liquidity risk

d)

opportunity cost

6.

Which term refers to a plan for using your income in a way that best meets your wants and needs?

a)

opportunity cost

b)

a variable expense

c)

a budget

d)

a budget variance

7.

The purpose of a personal budget is to make a plan to organize and manage your money.

a)

True

b)

False

8.

Method of weighing the costs against the benefits of an action, purchase, or financial decision.

a)

cost-benefit analysis

b)

marginal benefit

c)

marginal cost

9.

What are the steps in the Systematic Decision-Making

a)

Define problem

b)

explore alternatives

c)

choose the best alternative

d)

act on the decision

e)

evaluate the decision

10.

Your financial future is in your hands.

a)

false

b)

true

11.

Living within your means is in your hands.

a)

true

b)

false

12.

Period of slow growth

a)

economic conditions

b)

recession

c)

inflation

13.

Period of rising prices

a)

economic conditions

b)

recession

c)

inflation

14.

State of the economy at a given time

a)

recession

b)

economic condition

c)

inflation

15.

Globalization is worldwide spread and integration of production, markets, communications, and technology

a)

true

b)

false

16.

Indicate the entitlements we received

a)

Medicaid

b)

Social Security

c)

Medicare

d)

Hospitalization

17.

Economic conditions that can affect personal financial decisions include:

a)

Recession

b)

Inflation

c)

Unemployment