AGEC 235 Exam 1 questions with correct answers

Financial skill, Financial behavior, financial situation CORRECT ANSWER List the 3 things that must be improved in order to reach a state of financial well-being An ongoing process to help you make sensible decisions about money that that can help you achieve your life goals CORRECT ANSWER Define Financial Planning 1. Evaluate your financial health 2. Define your financial goal 3. Develop a plan of action 4. Implement your plan 5. Review your progress, reevaluate, and revise your plan CORRECT ANSWER List the 5 steps in the Personal Financial Planning Process Interest paid on interest CORRECT ANSWER Define "Compound Interest" 1. Short term less than 1 year 2. Intermediate term 1 to 10 years 3. Long term more than 10 years CORRECT ANSWER List the 3 types of financial goals and describe their duration Specific Measurable Attainable Relevant