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