Principles of Financial Planning — Quiz

Question 1

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

Revolt · Accepted Answer

opportunity cost.

Question 2

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

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better prepared to calculate financial risks

Question 3

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

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video games

Question 4

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

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loans and interest.

Question 5

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

Revolt · Accepted Answer

better prepared to calculate financial risks

Question 6

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

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increased long-term challenges; larger long-term credit or loan costs; less preparation for emergencies

Question 7

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

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

Question 8

In personal finance, one makes decisions based on needs vs. wants. What is considered a need?

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something one cannot live without

Question 9

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

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What is the likely return?; What can go wrong?; Is the risk worth the return?

Question 10

In personal finance, one makes decisions based on needs vs. wants. What is considered a need?

Revolt · Accepted Answer

something one cannot live without

Principles of Financial Planning — Quiz Answers