FHCE 3200 | Intro to Personal Finance | Chapter 1 || with 100% Errorless Solutions.
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Course
FHCE 3200 |
Institution
FHCE 3200 |
Personal Finance correct answers the study of personal and family resources considered important in achieving financial success; it involves how people spend, save, protect, and invest their financial resources
Financial Literacy correct answers your knowledge of facts, concepts, principles, and...
FHCE 3200 | Intro to Personal Finance | Chapter 1 || with
100% Errorless Solutions.
Personal Finance correct answers the study of personal and family resources considered
important in achieving financial success; it involves how people spend, save, protect, and invest
their financial resources
Financial Literacy correct answers your knowledge of facts, concepts, principles, and
technological tools that are fundamental to being smart about money; it improves your ability to
handle day-to-day financial matters, helps you avoid the consequences of poor financial
decisions that could take years to overcome, helps you make informed and confident personal
money decisions, and makes you more financially responsible
Financial Well-Being correct answers a state of being wherein a person can fully meet current
and ongoing financial obligations, can feel secure in their financial future, and is able to make
choices that allow them to enjoy life
Financially Responsible correct answers you are accountable for your future financial well-being
and that you strive to make good decisions in personal finance; you control your personal
financial destiny and make all decisions to become successful
The Five Steps to Personal Financial Planning correct answers 1. Evaluate financial condition
relative to education/career
2. Define financial goals
3. Develop a plan to achieve the goals (long term)
4. Periodically, implement spending plans to stay on track (shorter term)
5. Review progress and revise
Financial Success correct answers the achievement of financial aspirations that are desired,
planned, or attempted; it is arbitrary
Financial Security correct answers the comfortable feeling that your financial resources will be
adequate to fulfill any needs you have as well as most of your wants
Wealth correct answers Having an abundance of monetary resources that exceeds simple security
Financial Happiness correct answers The satisfaction one gets when following a spending
budget; the feeling you get when you are content with your money matters and habits; the more
good financial behaviors you follow, the happier you'll be, financially
Your level of living is your current financial position, while your standard of living is... correct
answers your desired financial position
(similar to Financial Success; SoL is where you'd like to be / expect to be financially, while LoL
is where you currently are, again, financially)
, The Business Cycle of an Economy has 4 steps: correct answers - expansion (when the economy
is increasing)
- peak (the end of an expansion and the beginning of a contraction)
- contraction (when the economy is falling)
- trough (the end of a contraction and beginning of an expansion)
Fact - Business Cycle typically lasts ~6 years
Gross Domestic Product correct answers A measurement of the market value of all goods and
services produced by a country's economy; growth rate >2% is bad, ~(2.5 - 3.5) is good, <4% is
bad (likely future inflation)
Economic Indicator (EI) correct answers any economic statistic, such as the unemployment rate,
GDP, or the inflation rate that suggests how well the economy is doing and how well the
economy might do in the future
Procyclic EI correct answers An economic indicator that moves with the economy; examples
include retail sales, industrial production, GDP, number of employees
Countercyclic EI correct answers Moves in the opposite direction of economy, as econ gets
better this indicator shrinks; for example, Unemployment rate
Leading EI correct answers Moves before the economy moves. Indicates a shift in economic
productivity prior to the economy actually shifting; an example is Stock Market, but also
building permits, existing home sales, and home prices
Consumer Confidence Index correct answers LEI - A measurement of how willing consumers
are to spend / how confident they are in the economy and its future. If consumers are confident,
they'll spend more, if not, they'll save, and spend less
Index of Leading Economic Indicators correct answers A composition of various LEI's that
indicates future economic success based off a wide variety of sources
S&P 500 means? correct answers Standard and Poor's 500 Stock Index
Prices and interest rates typically move in the __________ direction correct answers same
Inflation correct answers The process by which goods and services increase in cost steadily
overtime; typically happens when the supply of money (or credit) rises faster than the supply of
goods and services available for purchases. It also may be attributed to excessive demand or
sharply increasing costs of production
Why would lenders charge higher interest rates in a time of inflation? correct answers to offset
the losses on recently loaned funds
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