A good example of a well-stated financial goal is

Pay off $5,000 in credit card debt in two years

One of the benefits of holding an investment for over a year rather than selling it is that

capital gains will be taxed at a lower rate

The financial planning process

needs to be adjusted for changing needs and goals

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

better orr financially the person is

Person complains about how expensive it is to be a cigarette smoker. This is so because

the government imposes an excise (luxury) tax on them

Electricity and food expenditures are

variable expenses that change from one period to the another

studbud

W!SE - Money Management

10 termsStudBud Administration1,295 plays

Imported from external platform

Flashcards10 cardsFPractice quizPHost liveL

Questions 10

Answers

1
A good example of a well-stated financial goal is
buy a house
Pay off $5,000 in credit card debt in two years
become financially independent
buy a $25,000 car
2
Expenditures that remain constant from one time period to another are
steady expenses
fixed expenses
variable expenses
current expenses
3
One of the benefits of holding an investment for over a year rather than selling it is that
capital gains will be taxed at a lower rate
profits on the investment can be averaged over more time
fees will not be charged to brokers
you will avoid the asset transfer fee
4
A man budgeted $200 a month for clothing. He actually spent $150. The difference is called a(n)
income overage
outflow deficit
budget deficit
budget variance
5
The financial planning process
needs to be adjusted for changing needs and goals
includes lifetime goals
does not need to be revised for changing income and needs
guarantees that assets will increase
6
A person's debt ratio shows the relationship between debt & net worth. The lower the ratio, the
better orr financially the person is
the more likely the person is experiencing financial trouble
more in debt the person is
likelihood of future financial issues
7
Another term for the dollar amount of your paycheck after taxes and other withholdings is
net income
discretionary income
gross income
adjusted gross income
8
The extra money that you have to spend each month is called
discretionary income
a pension plan
a variable expense
a deficit
9
Person complains about how expensive it is to be a cigarette smoker. This is so because
the government imposes an excise (luxury) tax on them
the tobacco industry imports most of the tobacco
cost is controlled by the FDA (Food & Drug Administration)
tobacco is controlled by the FTC (Federal Trade Commission)
10
Electricity and food expenditures are
personal expenses for an individual or family
variable expenses that change from one period to the another
discreet expenses that do not have to be paid monthly
fixed expenses that remain the same all the time

W!SE - Money Management Flashcards | StudBud