Principles of Financial Planning

Question 1

A is a plan in which an individual balances available resources and expenses.

Revolt · Accepted Answer

budget

Question 2

Which of these is the best example of an asset?

Revolt · Accepted Answer

the antique diamond necklace someone is wearing

Question 3

Planning to finance higher education helps people prepare for their financial future because it teaches them about

Revolt · Accepted Answer

loans and interest.

Question 4

There are four steps in solving one’s personal financial challenges:1. considering opportunity costs2. assessing risks and returns 3. setting short- and long-term goals4. assessing needs and wantsWhich of these is the correct order of these steps?

Revolt · Accepted Answer

4, 1, 2, 3

Question 5

This chart shows Dan’s budget:

Revolt · Accepted Answer

No, Dan should reduce his discretionary spending.

Question 6

_____ are items such as utilities, rent, and food—items that one can’t do without.

Revolt · Accepted Answer

Needs

Question 7

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

Revolt · Accepted Answer

Short-term goals are more immediate than long-term goals.

Principles of Financial Planning Answers

More from this Course

TRY EDGENUITY HACKS