Business and Personal Finance © 2007

Chapter 1: Personal Financial Planning

Practice Tests

1
_____ is the study of the decisions that go into making, distributing, and using goods and services.
A)values
B)wealth-watch
C)economics
D)personal financial planning
2
Getting a college eduction, buying a car, and starting a business are examples of _____.
A)opportunity costs
B)plans
C)benefits
D)goals
3
The first step of developing a personal financial plan is _____.
A)putting away money
B)determining your current financial situation
C)finding sources of financial information
D)understanding risks
4
Your financial goals should be all of the following EXCEPT _____.
A)unclear
B)specific
C)set within a defined time frame
D)realistic
5
Saving money to buy a house in ten years and putting money away for retirement are examples of _____.
A)trade-offs
B)long-term goals
C)intermediate goals
D)opportunity plans
6
_____ are purchases that you make often and use up quickly.
A)durable goods
B)services
C)intangible items
D)consumable goods
7
All of the following are important factors that influence your day-to-day decisions about finances EXCEPT _____.
A)life situations
B)personal values
C)location
D)economic factors
8
The amount that your original deposit will be worth in the future, based on earning a specific interest rate over a specific period of time, is its _____.
A)future value
B)cost behavior
C)consumer credit
D)direct labor
9
In order to calculate the time value of your savings, you need to know the annual interest rate, the length of time your money will be in an account, and the _____.
A)credit amount
B)principal
C)actual cash value
D)bank reconciliation
10
A _____ is a person who purchases and uses goods or services.
A)creditor
B)company
C)consumer
D)credit union
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