Exam 3: General Principles of Financial Planning

Another name for an income statement is a:

In economics, when does the Federal Reserve put money into circulation and expand the supply of credit?

You want to borrow money from a bank and your house is used as a mortgage, which serves as a protection for the bank in case you default on your repayment. In a mortgage loan, the house represents what of the following?

Unearned revenue is considered a/an:

Which of the following choices would appear first under the assets category in a balance sheet?

What type of mortgage does not require repayment?

In economics, what term explains that higher prices reduce the demand for an item and lower prices increase the demand for an item?

In economics, when should an investor avoid interest-sensitive securities and long-term debt instrument that pay fixed amounts of interest?

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

Which form of ownership is considered the most advantageous for shorter-termed projects or business ventures?

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

What should you NOT estimate when budgeting?

What is the least effective way to learn communication and counseling skills?

How many types of consumer debt are there?

What concept places a discount rate that gives a project a net present value that is equal to zero?

In the statement of owner's equity, owner's equity or capital is calculated using:

What is always the last step in financial planning?

What term presents macroeconomic statistics used by investors?

There are five stages of a client's life that should be considered in financing strategies. What is the age range for the "Prime Time Years"?