fcs 340: money management exam 1
Questions and answers
stewardship - answer an ethic that embodies the responsible planning
and management of resources
why should I learn about family finance? - answer to bring you to Christ;
to help you become a wise steward; to accomplish your divine mission; to
return with your family back to Heavenly Father's presence
what are the profound principles upon which this stewardship perspective
is based? - answer God has ownership (the right to possess or own
something), not us; we have a stewardship to use our resources for His
purposes; we have agency to make choices with our money; we have
accountability and are required to give Him an account of our stewardship
over the blessings we have received
how can i practically apply family finance in my life? - answer pay the
Lord first in tithes, fast offerings, and other contributions; create, use, and
update a budget; minimize and eventually eliminate debt; prepare for
emergencies and build a reserve; invest early, consistently, and wisely;
protect yourself and your family through adequate insurance; share
finances as equal partners in your marriage; teach your children and
family about finances
financial reserve - answer cash or other liquid assets held to cover 3-6
months of emergency expenses
speculation - answer any investment that promises a greater than
market-rate return
time value of money - answer how the value of money changes over time
due to inflation and interest
inflation - answer decrease in the purchasing power of money
, interest - answer remuneration for investing or loaning money
compound interest - answer interest earned on interest; the eighth
wonder of the world
compounding - answer the number of periods in which interest is
calculated during the year, i.e. annually, quarterly, monthly, and daily. the
shorter the compounding period, the more money from interest you will
earn, and the faster your money will grow
investment - answer a current commitment of your money in the
expectation of reaping future returns
present value (PV) - answer current value of money
prinicpal - answer the original amount of money borrowed or invested
(generally synonymous with present value)
interest rate (I) - answer the rate you will receive for investing at a
specified compounding period for a specified period of time (generally
expressed in percent per year)
nominal return - answer the return on an investment before the impacts
of inflation and taxes are taken into account
after-tax return - answer the return on an investment after the impact of
federal, state, and local taxes has been taken into account
real return - answer the rate of return on an investment after the
impacts of taxes and inflation are taken into account
compounding periods (N) - answer the frequency with which interest is
applied to an investment
Questions and answers
stewardship - answer an ethic that embodies the responsible planning
and management of resources
why should I learn about family finance? - answer to bring you to Christ;
to help you become a wise steward; to accomplish your divine mission; to
return with your family back to Heavenly Father's presence
what are the profound principles upon which this stewardship perspective
is based? - answer God has ownership (the right to possess or own
something), not us; we have a stewardship to use our resources for His
purposes; we have agency to make choices with our money; we have
accountability and are required to give Him an account of our stewardship
over the blessings we have received
how can i practically apply family finance in my life? - answer pay the
Lord first in tithes, fast offerings, and other contributions; create, use, and
update a budget; minimize and eventually eliminate debt; prepare for
emergencies and build a reserve; invest early, consistently, and wisely;
protect yourself and your family through adequate insurance; share
finances as equal partners in your marriage; teach your children and
family about finances
financial reserve - answer cash or other liquid assets held to cover 3-6
months of emergency expenses
speculation - answer any investment that promises a greater than
market-rate return
time value of money - answer how the value of money changes over time
due to inflation and interest
inflation - answer decrease in the purchasing power of money
, interest - answer remuneration for investing or loaning money
compound interest - answer interest earned on interest; the eighth
wonder of the world
compounding - answer the number of periods in which interest is
calculated during the year, i.e. annually, quarterly, monthly, and daily. the
shorter the compounding period, the more money from interest you will
earn, and the faster your money will grow
investment - answer a current commitment of your money in the
expectation of reaping future returns
present value (PV) - answer current value of money
prinicpal - answer the original amount of money borrowed or invested
(generally synonymous with present value)
interest rate (I) - answer the rate you will receive for investing at a
specified compounding period for a specified period of time (generally
expressed in percent per year)
nominal return - answer the return on an investment before the impacts
of inflation and taxes are taken into account
after-tax return - answer the return on an investment after the impact of
federal, state, and local taxes has been taken into account
real return - answer the rate of return on an investment after the
impacts of taxes and inflation are taken into account
compounding periods (N) - answer the frequency with which interest is
applied to an investment
