Exam 3: General Principles of Financial Planning

Jenny owns a bakery that makes hot cross buns. She purchased a delivery van to deliver her buns to local restaurants. She pays $300 each month for her loan payment on the van. This payment is an example of:

Economists postulate that there is a relationship between inflation and unemployment within societies. They state that when the real GDP of a country is high, actual unemployment rate falls below its natural level. What effect does this have on inflation?

What is always the last step in financial planning?

In economics, what concept is defined as a manifestation of a small price change causing a rather large change in the amount purchased?

How many types of budgeting are there?

What is measured by the Consumer Price Index and Producer Price Index indicating the general upward price movement of goods and services?

When should you first present alternatives to the client?

What types of information should you analyze about the client's current financial situation?

Which of the following is true regarding financial planning?

What determines the size and rate of growth of the money supply that affects interest rates?

What type of product has underlying terms and conditions that meet the funding criteria set by Fannie Mae and Freddie Mac?

What term is defined by slow economic growth, high unemployment, increased prices, and inflation?

Which of the following is NOT an example of one of the theoretical principles that financial counselors and financial therapists use?

What is caused by the decline of general price levels caused by the reduction in the supply of money or credit?

A country's national economy has shown an 8% growth over the past 4 years. Before that, the economy moved from recession to stagnation over a period of 10 years. What is this economic fluctuation referred to?

When should an investor purchase tangible assets?

What is the first step in the financial planning process?

What determines how much money deposited today be worth at a specified time in the future?

At what point in the financial planning process should you and the client determine how you will be paid?

How much emergency funds savings should there be?