FHCE 3200 Module 1 2025 Questions and Answers

FHCE 3200 Module 1 2025 Questions
and Answers


Perceived Competence - --Answer --how well someone can access,

understand, and apply financial information


Measured Competence - --Answer --A person's ability to access, understand,

and apply financial information when measured on a scale


Financial Capability - --Answer --an individual's capacity based on

knowledge, skills, and access, to manage financial resources effectively


The Concept of 'Lenses' in the financial world: - --Answer ---risk tolerance


-knowledge (edu., training, experience)

-current environment

-recent events


Why is financial literacy important? - --Answer ---babyboomers approaching

retirement

-increased responsibility in saving for one's retirement/managing finances


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, -increasing longevity

-mandatory auto insurance, health insurance, etc.

-complex financial decisions are more individualized than institutionalized.


Characteristics of Financially Capable Individuals: - --Answer ---self

regulation (includes self-efficacy, self control)

-experience

-education

-interest

-involvement in decisions

-altruism


Pathways to wealth: - --Answer ---keep good records


-spend less than earned

-maintain appropriate risk management strategies

-save money regularly


Assets listed in increasing order based on risk: - --Answer ---savings

accounts

-US gov. bonds




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