PERSONAL FINANCE COMPREHENSIVE EXAM SCRIPT VERIFIED QUESTIONS AND SOLUTIONS GRADED APLUS

PERSONAL FINANCE COMPREHENSIVE
EXAM SCRIPT VERIFIED QUESTIONS AND
SOLUTIONS GRADED APLUS

●● Opportunity Cost
Answer: What you give up by making a choice.


●● What are the main elements of every decision we make?
Answer: Spend
Save
Share


●● Spend
Answer: -For daily living expenses
-For major expenditures
-For recreational activities


●● Save
Answer: -For long-term financial security


●● Share

, Answer: -For local and global assistance to those in need


●● The Financial Planning Process
Answer: 1. Determine current financial situation
2. Develop your financial goals
3. Identify alternative courses of action
4. Evaluate alternatives
5. Create and implement your financial action plan
6. Review and revise the financial plan


●● Evaluate Alternatives
Answer: Consider
-life situation
-personal values
-economic factors
Assess
-risk
-time value of money (opportunity cost)


●● What are some of the risks associated with financial decisions?
Answer: -Inflation Risk
-Interest Rate Risk