Exam 1: Overview of a Financial Plan

An understanding of personal finance is not necessary to judge the quality of advice that a financial adviser may give.

________ management involves decisions regarding how much money to retain in a liquid form and how to allocate funds among short-term investment instruments.

Which of the following would not be a factor in evaluating your current financial position?

Which of the following goals would be easiest to measure?

Cash flows are affected by financial planning decisions.Which of the following is not correct?

Which of the following would be classified as a short-term goal?

During his ________ your Uncle Harvey decides to cut you out of his will.

Credit should be used only when necessary,since it usually involves borrowed funds that you will need to pay back with interest.

Your net worth will not be increased by which of the following actions?

The income in your budget is not affected by

Liquidity cannot be enhanced using sound money and credit management.

The simple objective of financial planning is to make the best use of your resources to achieve your financial goals.

A good understanding of the financial planning process will allow you to make informed decisions without relying on the advice of financial advisers.

The wages that you forego when you leave work early to attend class is an example of a(n)________.

If your income exceeds the amount you spend,you should ________ your investments or ________ loans.

Goals should be set as high as possible regardless of reality because they may be obtainable.

Which of the following is an example of an opportunity cost?

________ is the process of forecasting future expenses and savings.

A complete financial plan consists of budgeting,taxes,financing,and investing.

A thorough understanding of this personal finance book qualifies you to become a financial adviser.