ECON 101

1. Which of the following best describes cash flow planning? A. The scheduling of current and future cash needs to achieve household goals. B. The recognition that cash flows can only be generated though strategic planning. C. A financial planning scheduling strategy that links financial reviews to cash flows. D. All of the above describe cash flow planning. E. None of the above describes cash flow planning. 2. Which of the following is not a goal of cash flow planning? A. Reducing tax li...

2. Summarize the expectation theory and the preferred habitat the theory of the term structure of interest rates. Are these theories related, or are they alternative explanations of the term structure? Answer: The expectation theory holds that the shape of the yield curve is determined by the investors’ expectations of future interest rate movements and that changes in these expectations change the shape of the yield curve. The preferred habitat theory asserts that investors will not hol...

A. Excess of supply for a good or goods as compared with the demand. B. Increases in the cost of items needed to produce a good. C.Lack of competition arising from few producers for that item and barriers to new companies entering the market. D. An excess supply of money in the economy. E. All of the above are inflation factors. 2. Which of the following is not an effect of inflation? A. Redistribute wealth. B. Change economic behavior and bring about inefficient economic activity. C. R...

1. Which of the following is not a financial planning objective associated with estate planning? A. To match the amount and type of assets to be distributed to circumstances and our wishes. B. To match taxes outstanding with debt liability upon death. C. To leave other heirs with little or no conflict wherever possible. D. To protect ourselves while we are still alive. E. All of the above are financial planning objectives associated with state planning. 2. What is the fourth step of estate...