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Financial Planning

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

STATE which of the 6 steps to financial goal planning is represented in this scenario: "George is using the SMART Goals acronym to plan out the future."

a)

Determining Your Financial Situation

b)

Developing Your Goals

c)

Identifying Your Options

d)

Evaluate Alternatives

e)

Create and Use an Action Plan

2.

STATE which of the 6 steps to financial goal planning is represented in this scenario: "Mary schedules a meeting with a financial adviser at E*Trade to discuss her portfolio."

a)

Determining Your Financial Situation

b)

Developing Your Goals

c)

Identifying Your Options

d)

Evaluate Alternatives

e)

Create and Use a Plan of Action

3.

STATE which of the 6 steps to financial goal planning is represented in this scenario: "Craig decides it's time to expand his newspaper by adding on new staff members."

a)

Determining Your Financial Situation

b)

Developing Your Goals

c)

Identifying Your Options

d)

Evaluate Alternatives

e)

Create and Use a Plan of Action

4.

STATE which of the 6 steps to financial goal planning is represented in this scenario: "Susan begins compiling a detailed summary of her finances."

a)

Determining Your Financial Situation

b)

Developing Your Goals

c)

Identifying Your Options

d)

Evaluate Alternatives

e)

Create and Use a Plan of Action

5.

STATE which of the 6 steps to financial goal planning is represented in this scenario: "Marissa, looking to begin shopping for a car, begins writing out what she NEEDS in her car and and she would WANT in her car."

a)

Determining Your Financial Situation

b)

Developing Your Financial Goals

c)

Identifying Your Options

d)

Evaluate Alternatives

e)

Create and Use a Plan of Action

6.

Which of the following scenarios would be an example of liquidity risk?

a)

Mr L buys a car for $54,000. 10 years later he can only sell it for $10,000 at most.

b)

Mr L gets fired. (Cuz really... it's only a matter of time.)

c)

Mr L puts his savings in the walls of his house. 30 years later it has lost it's value by 50%.

d)

Mr L gets a loan at 5% interest, which stinks since last year they were at 3% interest.

7.

Which of the following scenarios would be an example of income risk?

a)

Mr L buys a car for $54,000. 10 years later he can only sell it for $10,000 at most.

b)

Mr L gets fired. (Cuz really... it's only a matter of time.)

c)

Mr L puts his savings in the walls of his house. 30 years later it has lost it's value by 50%.

d)

Mr L gets a loan at 5% interest, which stinks since last year they were at 3% interest.

8.

Which of the following scenarios would be an example of inflation risk?

a)

Mr L buys a car for $54,000. 10 years later he can only sell it for $10,000 at most.

b)

Mr L gets fired. (Cuz really... it's only a matter of time.)

c)

Mr L puts his savings in the walls of his house. 30 years later it has lost it's value by 50%.

d)

Mr L gets a loan at 5% interest, which stinks since last year they were at 3% interest.

9.

Which of the following scenarios would be an example of interest rate risk?

a)

Mr L buys a car for $54,000. 10 years later he can only sell it for $10,000 at most.

b)

Mr L gets fired. (Cuz really... it's only a matter of time.)

c)

Mr L puts his savings in the walls of his house. 30 years later it has lost it's value by 50%.

d)

Mr L gets a loan at 5% interest, which stinks since last year they were at 3% interest.

10.

Which of the following best summarizes step 6 of the financial planning steps?

a)

Have a plan B

b)

Invest in bonds, not stocks

c)

Save in a bank, not a credit union

d)

Save in a credit union, not a bank.