Chapter3 Personal Financial Planning

the study of decisions that go into making, distributing and using goods and services

amount of goods and services people are willing to buy

When there is high inflation interest rates tend to go

ability to easily convert financial resources into cash quickly without losing value

Hairstyling and bookkeeping are examples of

the amount of goods an services available

Earning interest on previously earned interest is called

Ways people make, distribute and use goods and services is called

amount of money deposited in which interest is paid

Saving for vacation or paying off small debts quickly is an example of

Spending, saving and investing to live the life you want to can be achieved with

Time value of money is

A series of equal, regular deposits is called

Increase in amount of money due to interest and dividends

beliefs and principles that a person considers import, correct and desirable

A series of equal regular deposits is called

amount of money you need to deposit now to attain a desired amount in the future

way you spend, save and invest your money to achieve the life you want with financial security

Trade off of choosing one choice over another is called

the central banking organization of the United States

Amount your original deposit will be worth in future based on certain interest rate and time

If you invest $10,000 into a 1 year CD paying 7% interest, how much will it be worth at the end

The main cause of inflation is

Financial plans that are more then five years to accomplish are called

It is NOT one of the 5 types of investment risk we studied

supply and demand are examples of

person that purchases and uses goods and services

What is the first step of financial planning?

If you invest $5,000 at and interest rate of 10%, how much interest will you make in one year?

It is NOT one of the 6 steps in the financial planning process

Supply and demand are examples of

General rise in the level of prices for goods and services over time