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EPF W1SE MONEY MANAGEMENT Flashcards | StudBud
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EPF W1SE MONEY MANAGEMENT
EPF W1SE MONEY MANAGEMENT
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36 Personal Finance Questions
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1
Financial plans need to:
Include income but not expenses
Be approved by an accountant
Be changed during different stages in life
Include income and eliminate risks
2
A person complains about how expensive it is to smoke. Cigarettes costs so much because...
Most tobacco is imported
The government imposed an excise tax on tobacco
Tobacco is controlled by the FDA
Tobacco is controlled by the FTC
3
A stock broker or financial consultant
gives financial advice to clients
do not have to be licensed
sell money orders and certified checks
guarantees a return of investments (ROI)
4
A benefit of holding an investment for over a year rather than selling it in less than a year
Fees will not be charged by brokers for selling investments
Capital gains on the investment are taxed at a lower rate
Profits can be averaged for the time the investment is held
Money earned on the investment is tax free
5
You budget $200 a month for clothing. This month you spent $150. This is considered
A budget deficit
An outflow deficit
An income overage
A budget variance
6
Our values are:
The basic principles that guide our actions & beliefs
The same as our goals
What we want to achieve
Our expectations of other people
7
Another term for the dollar amount of your paycheck after taxes & other withholdings is:
Gross income
Adjusted gross income
Net income
Discretionary income
8
The term that best describes money left over after paying taxes, fixed & variable expenses is:
Net surplus
Net pay
Play money
Disposable/Descretionary income
9
The financial planning process
Needs to be adjusted for changing needs & goals in stages
Includes lifetime goals
Does not need to be revised for changing income & needs
Guarantees that assets will increase
10
A well stated financial goal is:
Realistic with a target date
Logical and specific
A map of steps to be taken n the future
Related to one's age group
11
Jane saw a breakfast cereal ad on TV & insisted her mother purchase it. This is an example of:
Power of persuasion in creating demand
Failure to reach parents
Focus on discouraging demand for products
Influence on consumer discipline
12
A person's debt ratio shows the relationship between debt & net worth. The lower the ratio the
better off financially the person is
worse off financially the person is
less liquid assets the person has
more liquid assets the person has
13
Ben's annual income is $30K, he contributed $3k to his IRA. What is is taxable income?
$0 because he contributed to his IRA
$33,000
$30,000
$27,000
14
Spreading ones assets across several types of savings & investments to manage risks is called
Allocation
Budgeting
Diversification
Pooling
