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The success of a financial plan will be determined by

how resources are used.

The financial planning process concludes with efforts to

review and revise your actions.

Higher prices are likely to result from

increased spending by consumers.

Which type of computation would a person use to determine current value of a desired amount for the future?

present value of a single amount

Short-term goals are usually achieved within the next year or so.

True

Developing and using a budget is part of the "obtaining" component of financial planning.

False

A risk premium associated with interest rates refers to

higher earnings due to uncertainty.

The stages that an individual goes through based on age, financial needs, and family situation is called the

adult life cycle.

Household size is a major influence on personal financial planning decisions.

True

The study of how wealth is created and distributed is

economics.

As Jean Tyler plans to set aside funds for her young children's college education, she is setting a(n) ____________ goal.

long-term

Planning to buy a house is an example of an intangible goal.

False

An example of a personal opportunity cost would be

time comparing several brands of personal computers.

Increased consumer spending will usually cause

higher employment levels.

When prices are increasing at a rate of 6 percent, the cost of products would double in about 12 years.

True

A question associated with the saving component of financial planning is:

Do you have an adequate emergency fund?

The changing cost of money is referred to as ____________ risk.

interest-rate

Reduced funds available for investment in our economy could result from

higher imports than exports.

The ability to convert financial resources into usable cash with ease is referred to as

liquidity.

If you put $1,000 in a saving account and make no further deposits, what type of calculation would provide you with the value of the account in 20 years?

future value of a single amount

With an inflation rate of 9 percent, prices would double in about ___________ years.

8

Using the services of financial institutions will be most evident in your effort to

implement the financial plan.

Most decisions have only a few alternatives from which to choose.

False

Risks associated with most financial decisions are fairly easy to measure.

False

Higher consumer prices are likely to be accompanied by

higher interest rates.

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