FCS340 Concept Check
Questions and answers
Distinguish among financial success, financial security, and financial
happiness. - answer Financial Success:
Achievement of financial aspirations. It is defined by the person who seeks
it.
Financial Security:
Feeling that your financial resources will be adequate to fulfill any needs.
Financial Happiness:
Experience you have when you are satisfied with your finances. Results
from practicing good financial behaviors.
Explain the five fundamental steps in the financial planning process. -
answer (1) Evaluate your financial condition relative to your education
and career choice
(2) Define your financial goals
(3) Develop a plan of action to achieve your goals
(4) Implement your plan
(5) Review your financial progress and make changes as appropriate
What are the building blocks to achieving financial success? - answer
Foundation: regular income
, Base: Checking account, savings account, insurance protection, employee
benefits
Establish: Long-term goals, short-term goals, financial records, budget,
emergency savings
Manage: Housing expenses, transportation expenses, insurance,
expenses, income taxes
Handle: Credit cards, saving accounts, education costs
Invest: Mutual funds, stocks and bonds, real estate, retirement plans
Achieve: Financial Success
Summarize the phases of the business cycle (economic cycle). - answer
Expansion: when the economy is increasing
Peak: the end of an expansion and the beginning of a contraction
Contraction: when the economy is falling
Through: the end of a contraction and the beginning of an expansion
Describe two statistics that help predict the future direction of the
economy. - answer Procyclic Indicators:
Examples: retail sales, industrial prodcution, number of employees, GDP
(gross domestic product)
Countercyclic Indicators:
Moves in the opposite direction from the economy
Questions and answers
Distinguish among financial success, financial security, and financial
happiness. - answer Financial Success:
Achievement of financial aspirations. It is defined by the person who seeks
it.
Financial Security:
Feeling that your financial resources will be adequate to fulfill any needs.
Financial Happiness:
Experience you have when you are satisfied with your finances. Results
from practicing good financial behaviors.
Explain the five fundamental steps in the financial planning process. -
answer (1) Evaluate your financial condition relative to your education
and career choice
(2) Define your financial goals
(3) Develop a plan of action to achieve your goals
(4) Implement your plan
(5) Review your financial progress and make changes as appropriate
What are the building blocks to achieving financial success? - answer
Foundation: regular income
, Base: Checking account, savings account, insurance protection, employee
benefits
Establish: Long-term goals, short-term goals, financial records, budget,
emergency savings
Manage: Housing expenses, transportation expenses, insurance,
expenses, income taxes
Handle: Credit cards, saving accounts, education costs
Invest: Mutual funds, stocks and bonds, real estate, retirement plans
Achieve: Financial Success
Summarize the phases of the business cycle (economic cycle). - answer
Expansion: when the economy is increasing
Peak: the end of an expansion and the beginning of a contraction
Contraction: when the economy is falling
Through: the end of a contraction and the beginning of an expansion
Describe two statistics that help predict the future direction of the
economy. - answer Procyclic Indicators:
Examples: retail sales, industrial prodcution, number of employees, GDP
(gross domestic product)
Countercyclic Indicators:
Moves in the opposite direction from the economy
