Economics and Personal Finance DLE
2025 Final Exam Study Guide And All
Correct Answers.
Personal financial planning - Answer Arranging to spend, save, and invest money to live
comfortably, have financial security, and achieve goals
Goals - Answer Things you want to accomplish
Give an example of a goal - Answer Getting a college education
Buying a car
Starting a business
Values - Answer Beliefs and principles you consider important, correct, and desirable
Will everyone have the same goals and values? - Answer No
Need - Answer Something you must have to survive
What are your basic needs? - Answer Food, shelter, clothing
Want - Answer Something you desire or would like to have or do
Opportunity cost - Answer What is given up when making one choice instead of another
Liquidity - Answer The ability to easily convert financial assets into cash without loss in value
What are the three timeframes of goals? - Answer Short-term - one year or less
Intermediate goals - 2 to 5 years
Long-term goals - More than five years
, Consumable good - Answer purchases that you make often and use up quickly
Durable good - Answer Expensive items that last three years or more when used on a regular
basis
What do SMART goals stand for? - Answer Specific
Measurable
Achievable
Realistic
Time-based
Economics - Answer The study of the decisions that go into making, distributing, and using
goods and services; the study of the allocation fo scarce resources
Supply - Answer The amount of goods and services available for sale
Demand - Answer The amount of goods and services people are willing and able to buy
What is the Federal Reserve System and what does it do? - Answer The Federal Reserve
System is the central banking organization of the United States. It regulates money supply,
determines interest rates, and buys and sells government securities.
Inflation - Answer The rise in the level of prices for goods and services
Interest - Answer The price that is paid for the use of another's money
What are examples of personal opportunity costs? - Answer Health, knowledge, skills, time
Safe-deposit box - Answer A small, secure storage compartment that you can rent in a bank
What might you keep in home files? - Answer Receipts and other financial papers that are not
hard to replace
2025 Final Exam Study Guide And All
Correct Answers.
Personal financial planning - Answer Arranging to spend, save, and invest money to live
comfortably, have financial security, and achieve goals
Goals - Answer Things you want to accomplish
Give an example of a goal - Answer Getting a college education
Buying a car
Starting a business
Values - Answer Beliefs and principles you consider important, correct, and desirable
Will everyone have the same goals and values? - Answer No
Need - Answer Something you must have to survive
What are your basic needs? - Answer Food, shelter, clothing
Want - Answer Something you desire or would like to have or do
Opportunity cost - Answer What is given up when making one choice instead of another
Liquidity - Answer The ability to easily convert financial assets into cash without loss in value
What are the three timeframes of goals? - Answer Short-term - one year or less
Intermediate goals - 2 to 5 years
Long-term goals - More than five years
, Consumable good - Answer purchases that you make often and use up quickly
Durable good - Answer Expensive items that last three years or more when used on a regular
basis
What do SMART goals stand for? - Answer Specific
Measurable
Achievable
Realistic
Time-based
Economics - Answer The study of the decisions that go into making, distributing, and using
goods and services; the study of the allocation fo scarce resources
Supply - Answer The amount of goods and services available for sale
Demand - Answer The amount of goods and services people are willing and able to buy
What is the Federal Reserve System and what does it do? - Answer The Federal Reserve
System is the central banking organization of the United States. It regulates money supply,
determines interest rates, and buys and sells government securities.
Inflation - Answer The rise in the level of prices for goods and services
Interest - Answer The price that is paid for the use of another's money
What are examples of personal opportunity costs? - Answer Health, knowledge, skills, time
Safe-deposit box - Answer A small, secure storage compartment that you can rent in a bank
What might you keep in home files? - Answer Receipts and other financial papers that are not
hard to replace
