fcs 340: money management exam 1 | Questions with
100% Verified Answers | Latest Update 2026/2027
Question: stewardship
Answer: an ethic that embodies the responsible planning and management of resources
Question: why should I learn about family finance?
Answer: to bring you to Christ; to help you become a wise steward; to accomplish your divine
mission; to return with your family back to Heavenly Father's presence
Question: what are the profound principles upon which this stewardship perspective is based?
Answer: God has ownership (the right to possess or own something), not us; we have a
stewardship to use our resources for His purposes; we have agency to make choices
with
our money; we have accountability and are required to give Him an account of our
stewardship over the blessings we have received
Question: how can i practically apply family finance in my life?
Answer: pay the Lord first in tithes, fast offerings, and other contributions; create, use, and
update
a budget; minimize and eventually eliminate debt; prepare for emergencies and build
a
reserve; invest early, consistently, and wisely; protect yourself and your family
through
adequate insurance; share finances as equal partners in your marriage; teach your
children and family about finances
Question: financial reserve
Answer: cash or other liquid assets held to cover 3-6 months of emergency expenses
Question: speculation
Answer: any investment that promises a greater than market-rate return
Question: time value of money
Answer: how the value of money changes over time due to inflation and interest
Question: inflation
Answer: decrease in the purchasing power of money
Question: interest
Answer: remuneration for investing or loaning money
, Question: compound interest
Answer: interest earned on interest; the eighth wonder of the world
Question: compounding
Answer: the number of periods in which interest is calculated during the year, i.e. annually,
quarterly, monthly, and daily. the shorter the compounding period, the more money
from
interest you will earn, and the faster your money will grow
Question: investment
Answer: a current commitment of your money in the expectation of reaping future returns
Question: present value (PV)
Answer: current value of money
Question: prinicpal
Answer: the original amount of money borrowed or invested (generally synonymous with
present
value)
Question: interest rate (I)
Answer: the rate you will receive for investing at a specified compounding period for a
specified
period of time (generally expressed in percent per year)
Question: nominal return
Answer: the return on an investment before the impacts of inflation and taxes are taken into
account
Question: after-tax return
Answer: the return on an investment after the impact of federal, state, and local taxes has
been
taken into account
Question: real return
Answer: the rate of return on an investment after the impacts of taxes and inflation are taken
into
account
Question: compounding periods (N)
Answer: the frequency with which interest is applied to an investment
100% Verified Answers | Latest Update 2026/2027
Question: stewardship
Answer: an ethic that embodies the responsible planning and management of resources
Question: why should I learn about family finance?
Answer: to bring you to Christ; to help you become a wise steward; to accomplish your divine
mission; to return with your family back to Heavenly Father's presence
Question: what are the profound principles upon which this stewardship perspective is based?
Answer: God has ownership (the right to possess or own something), not us; we have a
stewardship to use our resources for His purposes; we have agency to make choices
with
our money; we have accountability and are required to give Him an account of our
stewardship over the blessings we have received
Question: how can i practically apply family finance in my life?
Answer: pay the Lord first in tithes, fast offerings, and other contributions; create, use, and
update
a budget; minimize and eventually eliminate debt; prepare for emergencies and build
a
reserve; invest early, consistently, and wisely; protect yourself and your family
through
adequate insurance; share finances as equal partners in your marriage; teach your
children and family about finances
Question: financial reserve
Answer: cash or other liquid assets held to cover 3-6 months of emergency expenses
Question: speculation
Answer: any investment that promises a greater than market-rate return
Question: time value of money
Answer: how the value of money changes over time due to inflation and interest
Question: inflation
Answer: decrease in the purchasing power of money
Question: interest
Answer: remuneration for investing or loaning money
, Question: compound interest
Answer: interest earned on interest; the eighth wonder of the world
Question: compounding
Answer: the number of periods in which interest is calculated during the year, i.e. annually,
quarterly, monthly, and daily. the shorter the compounding period, the more money
from
interest you will earn, and the faster your money will grow
Question: investment
Answer: a current commitment of your money in the expectation of reaping future returns
Question: present value (PV)
Answer: current value of money
Question: prinicpal
Answer: the original amount of money borrowed or invested (generally synonymous with
present
value)
Question: interest rate (I)
Answer: the rate you will receive for investing at a specified compounding period for a
specified
period of time (generally expressed in percent per year)
Question: nominal return
Answer: the return on an investment before the impacts of inflation and taxes are taken into
account
Question: after-tax return
Answer: the return on an investment after the impact of federal, state, and local taxes has
been
taken into account
Question: real return
Answer: the rate of return on an investment after the impacts of taxes and inflation are taken
into
account
Question: compounding periods (N)
Answer: the frequency with which interest is applied to an investment
