Exam 1: Understanding the Financial Planning Process

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -For most people,debts [increase constantly | increase and then decrease] during their lifetimes.

Mutual funds are examples of financial assets.

This is a measure of inflation based on changes in the cost of a market basket of consumer goods and services:

Insurance provides a way to make money on unfortunate events.

The financial crisis of 2008 and 2009 was the first depression the U.S.has experienced in 75 years.

Family financial goals should be

As the rate of inflation increases,

Standard of living is defined as the necessities,comforts,and luxuries desired by an individual or group.

The three key groups in the economic environment are

It is possible to draw up one financial plan that will work for most people.

Financial planning can improve your standard of living.

The government employs monetary and fiscal policy to ensure the economy always remains stable.

The first step in the financial planning process is to develop financial plans and strategies to achieve goals.

A ____ is a designation earned by financial planners after completing required courses of study.

Cities with higher costs of living also experience higher rates of inflation.

Debt is another word for liability.

A strong economy leads to

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -A decrease in the gross domestic product would indicate that our economy is [growing | stagnating].

Short-term goals include things one wants to achieve in a year or less.

Consumers affect businesses by their choices of what goods and services to purchase and by choosing whether they will spend or save their incomes.