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1 Basics of Personal Finance Flashcards | StudBud
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1 Basics of Personal Finance
1 Basics of Personal Finance
26 terms
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The basic concepts and terms from Coach Reece's Personal Finance classes Chapter one
Flashcards
26 cards
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Practice quiz
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Questions
26
Answers
1
What an amount deposited today (based on length of time & rate of return) would be worth later:
Liquidity
Present Value
Current Value
Future Value
2
Something you would like to have....
WANT
SERVICE
NEED
GOOD
3
Determining price: the amount of an item that producers will or are able to sell at different prices:
Supply
Needs
Wants
Demand
4
The SECOND step in the Financial Planning Process is...
BORROW wisely
INVEST Long term
Set your GOALS
Determine your OPTIONS
5
The FIFTH step in the FInancial Planning Process is to....
Conduct a poll
invest 10% of your income in Lottery Tickets
Take a close look at your credit report
DEVELOP A PLAN AND USE IT to reach your financial goals
6
Decisions by the Federal Reserve ("the FED") can affect....
ALL of these can be affected
INTEREST RATES ON SAVINGS
AFFECT THE RATE OF INFLATION
INTEREST RATES ON LOANS
7
The Federal Reserve manipulates the money supply of the US to.....
ENCOURAGE DEBT
DISCOURAGE ECONONIC GROWTH
PRINT MONEY FOR FOREIGN GOVERNMENTS
CONTROL INFLATION
8
From the definition of Personal Financial Planning there are three things we can do with money:
Save it, Invest it, Lend it
Spend it, Save it, Invest it
Spend it, Recycle it, Invest it
Spend it, Save it, Incinerate it
9
Something you must have to survive:
SERVICE
GOOD
WANT
NEED
10
A type of purchase, it is when a person or a machine does something for you....
SERVICE
GOOD
SUPPLY
DEMAND
11
Choose an example of a Consumer
all of these are examples of consumers
HS student buying a snack from the machine
a small child that convinces their parent to buy them candy
a retired person living on their savings and retirement
12
The THIRD and FOURTH steps in the Financial Planning Process are:
Create a BUDGET
answer the email from the Nigerian Prince
Set your GOALS (long, medium and short term)
DETERMINE and EVALUATE your OPTIONS
13
The BIGGEST mistake people make with money is....
spending too much of it on NEEDS
NOT PLANNING how to use it
NOT MAKING ENOUGH of it
Putting it in a savings account
14
After you have developed that Financial Plan and put it into action, what is the LAST step?
just keep FOLLOWING THE PLAN whether it is working or not
start selling ice over the internet
REVIEW how the plan is working, and if necessary REVISE IT
GO BACK to step one
15
The ability to convert something of value into cash quickly with no loss of value....
Interest
Inflation
Liquidity
Net Worth
16
What is the term to describe the general rise in prices of the things we buy, during a year?
DEFLATION
LIQUIDITY
INFLATION
ANNUITY
17
Opportunity Cost can be defined as:
What is GIVEN UP WHEN MAKING A DECISION or course of action
Supply and Demand determining prices
the original amount of money on deposit
The things you want to accomplish
18
The FIRST step in the Financial Planning Process is:
determine your PRESENT SITUATION
set GOALS
make MONEY
SPEND wisely
19
The price you must pay for using someone else's money....
PRINCIPAL
INFLATION
INTEREST
LIQUIDITY
20
Which of these is NOT a characteristic of an effective Goal
SPECIFIC
CLEAR TIME FRAME
REALISTIC
VERY FLEXIBLE
21
The central banking organization of the United States is known as....
the "FED" or Federal Reserve System
FDIC or Federal Deposit Insurance Corporation
IRS or Internal Revenue Service
Department of unnecessary redundancies
22
The beliefs and principles that you use to make decisions (such as spending, investing)
WANTS
CONVENIENCE
VALUES
NEEDS
23
Half of the formula for determining price, it is the amount of a commodity that people depending on its price
Needs
Supply
Wants
Demand
24
Which of these would Demand and Supply affect?
The PRICE of Gasoline
ALL of these would be affected by Supply and Demand
The PRICE of housing in a popular neighborhood
WAGESfor employees
25
the study of the decisions that go into making, distributing, and using goods and services:
Computer Applications
Economics
Astrophysics
Business Management
26
A physical item that can be weighed or measured:
SUPPLY
GOOD
CONVENIENCE
SERVICE
