Financial Planning Quiz || 100% Verified Solutions.
SMART correct answers Specific
Measurable
Attainable
Realistic
Timely
Average propensity to consume correct answers the percentage of each dollar of income, on
average that a person spends for current needs rather than savings
Wealth correct answers the total value of al items owned by an individual, such as savings
accounts, stocks, bonds, home, and automobiles
Financial assets correct answers intangible assets, such as savings accounts and securities, that
are acquired for some promised future return
Tangible asset correct answers physical assets, such as real estate and automobiles, that can be
held for either consumption or investment purposes
6 step financial planning process correct answers -define financial goals
-develop financial plans and strategies
-implement financial plans and strategies
-periodically develop and implement budgets to monitor and control progress towards goals
-use financial statements to evaluate results of plans and budgets, taking corrective action as
required
-redefined goals and revise plans and strategies as personal circumstances change
, Financial goals correct answers results that an individual wants to attain, such as buying a home,
building a college fund, or achieving financial independence
Money correct answers the medium of exchange used as measure of value in financial
transactions
Utility correct answers the amount of satisfaction received from purchasing certain types or
quantities of goods and services
Psychology of Money correct answers Money and its utility aren't only economic concepts;
they're also closely linked to the psychological concepts of values, emotion, and personality.
Your personal value system--the important ideals and beliefs that guide your life--will also shape
your attitude toward money and wealth accumulation.
Long term goals correct answers 6 years output to the next 30 or 40 years
Short term goals correct answers 12 month period
Intermediate goals correct answers bridge the gap between short and long term goals, and both
intermediate and short term goals should be consistent with those long term goals
Plans to achieve financial goals correct answers -asset acquisition planning
-liability and insurance planning
-savings and investment planning
-employee benefit planning
-tax planning
-retirement and estate planning
SMART correct answers Specific
Measurable
Attainable
Realistic
Timely
Average propensity to consume correct answers the percentage of each dollar of income, on
average that a person spends for current needs rather than savings
Wealth correct answers the total value of al items owned by an individual, such as savings
accounts, stocks, bonds, home, and automobiles
Financial assets correct answers intangible assets, such as savings accounts and securities, that
are acquired for some promised future return
Tangible asset correct answers physical assets, such as real estate and automobiles, that can be
held for either consumption or investment purposes
6 step financial planning process correct answers -define financial goals
-develop financial plans and strategies
-implement financial plans and strategies
-periodically develop and implement budgets to monitor and control progress towards goals
-use financial statements to evaluate results of plans and budgets, taking corrective action as
required
-redefined goals and revise plans and strategies as personal circumstances change
, Financial goals correct answers results that an individual wants to attain, such as buying a home,
building a college fund, or achieving financial independence
Money correct answers the medium of exchange used as measure of value in financial
transactions
Utility correct answers the amount of satisfaction received from purchasing certain types or
quantities of goods and services
Psychology of Money correct answers Money and its utility aren't only economic concepts;
they're also closely linked to the psychological concepts of values, emotion, and personality.
Your personal value system--the important ideals and beliefs that guide your life--will also shape
your attitude toward money and wealth accumulation.
Long term goals correct answers 6 years output to the next 30 or 40 years
Short term goals correct answers 12 month period
Intermediate goals correct answers bridge the gap between short and long term goals, and both
intermediate and short term goals should be consistent with those long term goals
Plans to achieve financial goals correct answers -asset acquisition planning
-liability and insurance planning
-savings and investment planning
-employee benefit planning
-tax planning
-retirement and estate planning
