3.2 Principles of Financial Planning Answers

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1
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How do short-term financial goals differ from long-term financial goals?

A
Short-term goals involve more planning than long-term goals.
B
Short-term goals are more affordable than long-term goals.
C
Short-term goals cost more than long-term goals in the long run.
D
Short-term goals are more immediate than long-term goals.
3

Emma lives on a tight budget. She saves money and also makes intelligent choices when spending it. Which statements describe Emma’s financial skills? Select three options.

A
Emma is more prepared to meet her basic needs.
B
Emma is better prepared to avoid financial setbacks.
C
Emma is better able to avoid accumulating assets.
D
Emma is more prepared to face emergencies.
E
Emma is better able to avoid decision-making with her finances.
4

What is included in an individual’s personal assets? Select three options.

A
number of dependents
B
money
C
career
D
property
E
investment
6

Amanda wants to buy a new car. What questions of financial responsibility should she ask herself before she makes the purchase? Select three options.

A
Do I need this car or should I walk, bike, and take the bus to save money?
B
Is this a reliable vehicle or will I have to make costly repairs?
C
What will my friends think when I buy this car?
D
Will I be able to afford the insurance, gas, maintenance of battery, oil, tires, and also repairs?
E
Will this new car be fast and my favorite color?
7

Which results are more likely for someone without personal finance skills? Select three options.larger long-term credit or loan costsless preparation for emergenciesfewer utility expensessimple long-term investment strategiesincreased long-term challenges

A
larger long-term credit or loan costs
B
less preparation for emergencies
C
fewer utility expenses
D
simple long-term investment strategies
E
increased long-term challenges
8

What are the main purposes of a budget? Select three options.

A
to record past income and spending
B
to take out a student loan from the bank
C
to plan future income and spending
D
to apply for a mortgage
E
to balance available resources and expenses

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