,CHAPTER 1
1) Describe the S-M-A-R-T approach to developing financial goals. Give an example.
2) What are the eight components of financial planning?
3) People are commonly overwhelmed by the many influences on personal financial
decisions. What are the factors affecting personal financial planning?
4) What types of risks are commonly associated with personal financial decisions? How can
these risks be evaluated and minimized to reduce personal and financial difficulties?
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,5) Shauna Schmidt is trying to decide whether to keep her money in a savings account or in
a mutual fund. What would you tell her to help her analyze her decision?
6) What are the six steps in the financial planning process?
7) Explain why borrowers benefit more than lenders in times of high inflation.
8) What is meant by the term "time value of money?"
9) Describe the relationship between the annual inflation rate and prices using the Rule of
72.
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, 10) Many events affect your life situation and occur within the adult life cycle. List five
events.
11) Which of the following are benefits to financial literacy?
A.Increased effectiveness in obtaining, using, and protecting financial resources
B.Expanded control of financial activities
C.Avoidance of excessive debt, bankruptcy, and dependence on others for financial security
A) Only A
B) Only B
C) Only C
D) Only A and B
E) All of these choices are correct.
12) Fintech involves which of the following?
A.Apps, websites, and mobile devices for banking
B.Artificial intelligence, robotics, and drones
C.Blockchain, crowdfunding, and cryptocurrencies
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1) Describe the S-M-A-R-T approach to developing financial goals. Give an example.
2) What are the eight components of financial planning?
3) People are commonly overwhelmed by the many influences on personal financial
decisions. What are the factors affecting personal financial planning?
4) What types of risks are commonly associated with personal financial decisions? How can
these risks be evaluated and minimized to reduce personal and financial difficulties?
Version 1 1
,5) Shauna Schmidt is trying to decide whether to keep her money in a savings account or in
a mutual fund. What would you tell her to help her analyze her decision?
6) What are the six steps in the financial planning process?
7) Explain why borrowers benefit more than lenders in times of high inflation.
8) What is meant by the term "time value of money?"
9) Describe the relationship between the annual inflation rate and prices using the Rule of
72.
Version 1 2
, 10) Many events affect your life situation and occur within the adult life cycle. List five
events.
11) Which of the following are benefits to financial literacy?
A.Increased effectiveness in obtaining, using, and protecting financial resources
B.Expanded control of financial activities
C.Avoidance of excessive debt, bankruptcy, and dependence on others for financial security
A) Only A
B) Only B
C) Only C
D) Only A and B
E) All of these choices are correct.
12) Fintech involves which of the following?
A.Apps, websites, and mobile devices for banking
B.Artificial intelligence, robotics, and drones
C.Blockchain, crowdfunding, and cryptocurrencies
Version 1 3
