Principles of Financial Planning - Quiz Quiz

Question 1

When studying finance or economics, the cost of a decision is also known as a(n)

Revolt · Accepted Answer

A: opportunity cost.

Question 2

To assess the risk and return involved in a purchase decision, which practical questions should a potential buyer ask? Choose three correct answers.

Revolt · Accepted Answer

B: What is the likely return?; C: Is the risk worth the return?; D: What can go wrong?

Question 3

Through the successful study of personal finance, an individual will be

Revolt · Accepted Answer

D: better prepared to calculate financial risks

Question 4

In American society, which of these is an example of a want?

Revolt · Accepted Answer

C: video games

Question 5

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

Revolt · Accepted Answer

A: loans and interest.

Question 6

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

Revolt · Accepted Answer

C: loans and interest.

Question 7

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

Revolt · Accepted Answer

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

Question 8

Through the successful study of personal finance, an individual will be

Revolt · Accepted Answer

D: better prepared to calculate financial risks

Question 9

When studying finance or economics, the cost of a decision is also known as a(n)

Revolt · Accepted Answer

A: opportunity cost.

Question 10

Which results are more likely for someone without personal finance skills? Choose three correct answers.

Revolt · Accepted Answer

A: increased long-term challenges; B: larger long-term credit or loan costs; D: less preparation for emergencies

Principles of Financial Planning - Quiz Quiz Answers