Financial planning helps individuals to:

have strategies for saving and investing

One of the benefits of holding an investment for over a year is that the

capital gains will be taxed at a lower rate

Debt ratio shows the relationship between debt and net worth. The lower the ratio the

better off financially the person is.

A good example of a well-stated financial goal is

Pay off $5,000 in credit card debt in two years

A clear understanding of your personal values will help you to

make choices that reflect what is important to you

One of the reasons cigarettes are so expensive is that

the government imposes an excise tax on them.

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Money Power - Money Management Review

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10 question Review - Money Management

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Questions 10

Answers

1
Expenditures that remain constant from one time period to another are:
Variable expenses
Fixed expenses
Current expenses
Steady assets
2
You budget $200 a month for clothing. This month you spent $150 on clothing. Your budget has
a budget deficit
an outflow deficit
an income overage
a budget variance
3
The term that best describes your gross pay after taxes are deducted is
assets
take-home pay
total revenues
net worth
4
Financial planning helps individuals to:
eliminate risk on investments
guarantee future income
have strategies for saving and investing
achieve all goals by set target dates
5
One of the benefits of holding an investment for over a year is that the
capital gains will be taxed at a lower rate
I don't know!
fees will not be charged when you sell it
money earned on the investment will be considered tax-free
6
Debt ratio shows the relationship between debt and net worth. The lower the ratio the
less liquid assets the person has.
better off financially the person is.
more liquid assets the person has.
worse off financially the person is.
7
A good example of a well-stated financial goal is
Buy a $25,000 car
Become financially independent
Buy a house
Pay off $5,000 in credit card debt in two years
8
A clear understanding of your personal values will help you to
to spend money on material goods
to save effectively
increase your anxiety about consumer and financial decisions
make choices that reflect what is important to you
9
You can set up an Individual Retirement Account at
a bank
a small loan company
a real estate agency
an insurance agency
10
One of the reasons cigarettes are so expensive is that
the government imposes an excise tax on them.
Tobacco supply is controlled by the Federal Trade Commission
the tobacco industry imports most of the tobacco.
the cost is controlled by the Food and Drug Administration

Money Power - Money Management Review Flashcards | StudBud