FIN 3330 Exam 1 Test Questions with Answers Graded A+
The percentage of each dollar of income, on average, that
is spent for current needs and wants, rather than saved.
Average propensity to consume (APC)
For example, Mary's APC is 95%; on average, she spends
$0.95 and saves only a nickel of every dollar earned.
The irregularly occurring wavelike pattern of economic
Business cycle/economic cycle activity, generally depicted as an undulating wave of ex-
pansions, peaks, contractions, and troughs.
any non-monetary benefit provided by employers to em-
ployees. This form of compensation comes in a form other
than wages, salary, commissions, or other cash payments.
Employee benefit Employee benefits may include health, disability, and life
insurance; retirement, pension, and profit-sharing plans;
child and elder care; and/or educational assistance pro-
grams.
A financial professional who provides financial evaluations
and advice to individuals and families and who receives
Financial planner
compensation in the form of commissions, fees, or some
combination thereof.
A steady and sustained increase in general price levels
across economic sectors. This phenomenon is measured
Inflation
by the changing cost over time of goods and services that
a typical household might purchase.
The medium of exchange used as a measure of the value
of financial transactions. It is used to purchase goods and
Money
services and the utility (or satisfaction) that these goods
and services provide.
Used to characterize the value of a currency by describing
Purchasing power the amount of goods and services that can be purchased
by a dollar at a given time. Inflation tends to decrease this
, FIN 3330 Exam 1 Test Questions with Answers Graded A+
value; deflation, the opposite of inflation, tends to increase
this value.
The material well-being and peace of mind that individ-
Standard of living uals and groups desire and seek to attain, to maintain if
attained, to preserve if threatened, and to regain if lost.
The satisfaction received from buying and using certain
types or quantities of goods and services. Utility will result
utility from consuming free as well as costly goods and services.
A basic economic goal is to achieve the maximum amount
of utility per dollar of income spent.
The total value of all items owned by an individual or
family, including tangible and financial assets. Therefore,
wealth includes the value of home(s), personal belong-
ings, car(s), and other tangible assets, as well as intangi-
Wealth
ble assets like cash, checking and savings accounts, stocks,
bonds, and other financial assets. Remember, it is possible
that these assets may also have outstanding debts asso-
ciated with them.
Increased flexibility and ability to accommodate significant
The benefits of ettective and eflcient personal financial life changes and events. Better informed and deliberate
planning include: decision making regarding current and deferred spend-
ing.
The development of personal financial goals and target
dates that are consistent with your values, attitudes, and
behaviors.
Which of the following activities also contributes to your
financial success? The development of an ettective plan that is consistently
applied until it is revised in accordance with changes in
your goals and life circumstances.
, FIN 3330 Exam 1 Test Questions with Answers Graded A+
Self-awareness and knowledge of your own values, as well
as attitudes and behaviors regarding money, spending,
and saving.
Knowledge of what other average people believe and
how they behave, because they attect the same financial
markets and economic conditions that attect you.
Step 1: Define your financial goals.
Step 2: Develop the financial plans and strategies needed
to achieve those goals.
Step 3: Implement your financial plans and strategies.
The financial planning process Step 4: Develop and implement budgets to control your
progress toward your goals.
Step 5: Develop and use financial statements to evaluate
the results of your plans and budgets.
Step 6: As your personal circumstances change, redefine
your goals and revise your plans and strategies.
Long-term goals, which identify wants and needs that are
expected to be realized 6-40 years from now.
Financial goals describe the desired outcomes of your
Short-term goals, which address more immediate needs
financial planning activities. Most financial advisors rec-
and wants, such as those occurring within the next 12
ommend developing goals with three broad categories of
months.
completion dates
Intermediate-term goals, which identify wants and needs
that occur between the other two categories.
The percentage of each dollar of income, on average, that
is spent for current needs and wants, rather than saved.
Average propensity to consume (APC)
For example, Mary's APC is 95%; on average, she spends
$0.95 and saves only a nickel of every dollar earned.
The irregularly occurring wavelike pattern of economic
Business cycle/economic cycle activity, generally depicted as an undulating wave of ex-
pansions, peaks, contractions, and troughs.
any non-monetary benefit provided by employers to em-
ployees. This form of compensation comes in a form other
than wages, salary, commissions, or other cash payments.
Employee benefit Employee benefits may include health, disability, and life
insurance; retirement, pension, and profit-sharing plans;
child and elder care; and/or educational assistance pro-
grams.
A financial professional who provides financial evaluations
and advice to individuals and families and who receives
Financial planner
compensation in the form of commissions, fees, or some
combination thereof.
A steady and sustained increase in general price levels
across economic sectors. This phenomenon is measured
Inflation
by the changing cost over time of goods and services that
a typical household might purchase.
The medium of exchange used as a measure of the value
of financial transactions. It is used to purchase goods and
Money
services and the utility (or satisfaction) that these goods
and services provide.
Used to characterize the value of a currency by describing
Purchasing power the amount of goods and services that can be purchased
by a dollar at a given time. Inflation tends to decrease this
, FIN 3330 Exam 1 Test Questions with Answers Graded A+
value; deflation, the opposite of inflation, tends to increase
this value.
The material well-being and peace of mind that individ-
Standard of living uals and groups desire and seek to attain, to maintain if
attained, to preserve if threatened, and to regain if lost.
The satisfaction received from buying and using certain
types or quantities of goods and services. Utility will result
utility from consuming free as well as costly goods and services.
A basic economic goal is to achieve the maximum amount
of utility per dollar of income spent.
The total value of all items owned by an individual or
family, including tangible and financial assets. Therefore,
wealth includes the value of home(s), personal belong-
ings, car(s), and other tangible assets, as well as intangi-
Wealth
ble assets like cash, checking and savings accounts, stocks,
bonds, and other financial assets. Remember, it is possible
that these assets may also have outstanding debts asso-
ciated with them.
Increased flexibility and ability to accommodate significant
The benefits of ettective and eflcient personal financial life changes and events. Better informed and deliberate
planning include: decision making regarding current and deferred spend-
ing.
The development of personal financial goals and target
dates that are consistent with your values, attitudes, and
behaviors.
Which of the following activities also contributes to your
financial success? The development of an ettective plan that is consistently
applied until it is revised in accordance with changes in
your goals and life circumstances.
, FIN 3330 Exam 1 Test Questions with Answers Graded A+
Self-awareness and knowledge of your own values, as well
as attitudes and behaviors regarding money, spending,
and saving.
Knowledge of what other average people believe and
how they behave, because they attect the same financial
markets and economic conditions that attect you.
Step 1: Define your financial goals.
Step 2: Develop the financial plans and strategies needed
to achieve those goals.
Step 3: Implement your financial plans and strategies.
The financial planning process Step 4: Develop and implement budgets to control your
progress toward your goals.
Step 5: Develop and use financial statements to evaluate
the results of your plans and budgets.
Step 6: As your personal circumstances change, redefine
your goals and revise your plans and strategies.
Long-term goals, which identify wants and needs that are
expected to be realized 6-40 years from now.
Financial goals describe the desired outcomes of your
Short-term goals, which address more immediate needs
financial planning activities. Most financial advisors rec-
and wants, such as those occurring within the next 12
ommend developing goals with three broad categories of
months.
completion dates
Intermediate-term goals, which identify wants and needs
that occur between the other two categories.
