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Personal Finance StraighterLine Sections 1-7 Exam Questions and Answers 2024/2025( A+ GRADED 100% VERIFIED). $11.49   Add to cart
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Personal Finance StraighterLine Sections 1-7 Exam Questions and Answers 2024/2025( A+ GRADED 100% VERIFIED).
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Personal Finance StraighterLine Sections 1-7 Exam Questions and Answers 2024/2025( A+ GRADED 100% VERIFIED).

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  • September 25, 2024
  • 7
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • val
  • personal finance straighterline sections 1 7
  • personal financial planning ans the process of
  • financial plan ans a formalized report that sum
  • adult life cycle ans the stages in the family s

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  • Personal Finance StraighterLine Sections 1-7
  • Personal Finance StraighterLine Sections 1-7

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Personal Finance StraighterLine Sections
1-7
Personal Financial Planning - ANS the process of managing your money to achieve personal
economic satisfaction.

Financial Plan - ANS A formalized report that summarizes your current financial situation,
analyzes your financial needs, and recommends future financial activities.

Adult Life Cycle - ANS The stages in the family situation and financial needs of an adult.

Values - ANS ideas and principles that a person considers correct, desirable, and important

Economics - ANS The study of how wealth is created and distributed.

Federal Reserve System - ANS the central bank of the United States

Inflation - ANS A rise in the general level of prices.

Rule of 72 - ANS Just divide 72 by the annual inflation (or interest) rate. This will give you the
number of years that the inflation rate will double.

Consumer Price Index - ANS A measure of the average change in the prices of urban
consumers pay for a fixed basket of goods and services.

Interest Rate - ANS Cost of money

Bankruptcy - ANS A set of federal laws allowing you to either restructure your debts or remove
certain debts.

Parts of Financial Planning - ANS 1. Obtaining 2. Planning 3. Saving 4. Borrowing 5. Spending
6. Managing Risk 7. Investing 8. Retirement and Estate Planning

Short Term Goals - ANS Will be achieved within the next year or so (saving for a vacation or
paying off small debt)

Intermediate Goals - ANS have a time frame of two to five years

, Long Term Goals - ANS involve financial plans that are more than five years off, such as
retirement, money for children's college education, or the purchase of a vacation home

Effective Financial Goals should be... - ANS realistic, stated in specific and measurable terms,
based on a time frame, and action orientated.

Opportunity Cost - ANS What a person gives up by making a choice.

Time Value of Money - ANS Increase in an amount of money as a result of interest earned.

Future Value - ANS The amount to which current savings will increase based on a certain
interest rate and a certain time period; also referred to as compounding.

Present Value - ANS The current value for a future amount based on a certain interest rate and
a certain time period; also referred to as discounting.

Determining the future value - ANS Future value= original amount in savings + (amount
deposited X % account X time)

Personal Opportunity Costs - ANS Involves time that when used for one activity cannot be used
for other activities (ex: studying, working, etc)

Financial Opportunity Costs - ANS Using time value of money to make decision

Money Management - ANS the day-to-day financial activities necessary to manage current
personal economic resources while working toward long-term financial security.

Safe Deposit Box - ANS a private storage area at a financial institution with maximum security
for valuables

Components of Money Management - ANS 1. Storing and maintaining personal finance records
and documents
2. Creating personal financial statements
3. Creating and implementing a plan for spending and saving

Balance Sheet - ANS A financial statement that reports what an individual or a family owns and
owes (net worth statement)

3 steps to Creating a Balance Sheet - ANS 1. Listing items of value
2. Determine Amounts Owed
3. Computing Net Worth

Assets - ANS Cash and other property with monetary value

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