Exam 1: Personal Finance Basics and the Time Value of Money

If you put $500 in a savings account and make no further deposits,what type of calculation would provide you with the value of the account in 10 years?

Some savings and investment choices have the potential for higher earnings.However,these may also be difficult to convert to cash when you need the funds.This problem refers to:

The risk premium you receive as a saver is based:

A formalized report that summarizes your current financial situation,analyzes your financial needs,and recommends future financial activities is a(n):

The amount of interest is determined by multiplying the amount in savings by the:

The study of how wealth is created and distributed is:

A major activity in the planning component of financial planning is:

The appropriate path for daily money decisions will:

The success of a financial plan will be determined by:

Developing financial goals does not involve:

Financial institutions include the following:

Sophia Martin wants to travel after she retires as well as pay off the balance of the loan she has on the home she owns.Which step in the financial planning process does this situation demonstrate?

Inflation risk may include changes in buying power and:

An example of a personal opportunity cost would be:

Explain why borrowers benefit more than lenders in times of high inflation.

The main economic influence that causes inflation is:

Natalie Smith's new job is very demanding.She regularly works long hours and on the weekends.As a result,Natalie has not had much time for her family and friends.This is an example of:

If a person deposited $75 a month for 5 years earning 7 percent,this would involve what type of computation?

Using the services of financial institutions to research a situation will be most evident in your effort to:

The annual price increase for most goods and services measured by the Bureau of Labor Statistics is called ________.