The basic principles that guide our actions & beliefs

A stock broker or financial consultant

gives financial advice to clients

A benefit of holding an investment for over a year rather than selling it in less than a year

Capital gains on the investment are taxed at a lower rate

Financial plans need to:

Be changed during different stages in life

Jane saw a breakfast cereal ad on TV & insisted her mother purchase it. This is an example of:

Power of persuasion in creating demand

A person complains about how expensive it is to smoke. Cigarettes costs so much because...

The government imposed an excise tax on tobacco

A person's debt ratio shows the relationship between debt & net worth. The lower the ratio the

better off financially the person is

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MONEY MANAGEMENT

14 termsStudBud Administration21 plays

Personal Finance Questions

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Questions 14

Answers

1
A well stated financial goal is:
Realistic with a target date
Logical and specific
Related to one's age group
A map of steps to be taken n the future
2
Our values are:
Our expectations of other people
What we want to achieve
The same as our goals
The basic principles that guide our actions & beliefs
3
A stock broker or financial consultant
do not have to be licensed
gives financial advice to clients
guarantees a return of investments (ROI)
sell money orders and certified checks
4
A benefit of holding an investment for over a year rather than selling it in less than a year
Money earned on the investment is tax free
Capital gains on the investment are taxed at a lower rate
Profits can be averaged for the time the investment is held
Fees will not be charged by brokers for selling investments
5
Another term for the dollar amount of your paycheck after taxes & other withholdings is:
Gross income
Discretionary income
Net income
Adjusted gross income
6
The term that best describes money left over after paying taxes, fixed & variable expenses is:
Net surplus
Play money
Net pay
Disposable income
7
Ben's annual income is $30K, he contributed $3k to his IRA. What is is taxable income?
$33,000
$27,000
$0 because he contributed to his IRA
$30,000
8
Financial plans need to:
Be changed during different stages in life
Include income but not expenses
Be approved by an accountant
Include income and eliminate risks
9
Jane saw a breakfast cereal ad on TV & insisted her mother purchase it. This is an example of:
Failure to reach parents
Power of persuasion in creating demand
Focus on discouraging demand for products
Influence on consumer discipline
10
You budget $200 a month for clothing. This month you spent $150. This is considered
An outflow deficit
A budget deficit
An income overage
A budget variance
11
A person complains about how expensive it is to smoke. Cigarettes costs so much because...
Tobacco is controlled by the FDA
Most tobacco is imported
The government imposed an excise tax on tobacco
Tobacco is controlled by the FTC
12
The financial planning process
Includes lifetime goals
Guarantees that assets will increase
Needs to be adjusted for changing needs goals in stages
Does not need to be revised for changing income & needs
13
Spreading ones assets across several types of savings & investments to manage risks is called
Pooling
Budgeting
Diversification
Allocation
14
A person's debt ratio shows the relationship between debt & net worth. The lower the ratio the
worse off financially the person is
less liquid assets the person has
more liquid assets the person has
better off financially the person is

MONEY MANAGEMENT Flashcards | StudBud