FCS 340 EXAM 1 CERTIFICATION EVALUATION TESTED QUESTIONS FULL SOLUTION
GUIDE
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
GUIDE
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
