Financial Planning Final Exam: || With Errorless Answers.
Consumer correct answers A person or organization that uses a product or service
Credit correct answers The granting of a loan and the creation of debt; any form of deferred
payment
Debt correct answers An obligation of repayment owed by one party (the debtor/borrower) to a
second party (the creditor/lender); in most cases this includes repayment of the original loan
amount plus interest
Economy correct answers A system by which goods and services are produced and distributed
Financial Literacy correct answers The knowledge and skillset necessary to be an informed
consumer and manage finances effectively
Interest correct answers A fee paid by a borrower to the lender for the use of borrowed money;
typically interest is calculated as a percentage of the principal (original loan amount)
Loan correct answers A debt evidenced by a "note," which specifies the principal amount,
interest rate and date of repayment
Personal Finance correct answers All of the decisions and activities of an individual or family
regarding their money, including spending, saving, budgeting, etc.
Personal finance refers to all the financial decisions an individual or family must make in order
to earn, budget, save and spend money over time. These decisions are generally based on a
variety of financial risks and planning for the future correct answers Why should students learn
about personal finance?
, Assess your financial situation (income, assets, and liabilities).
Set money goals! Make sure you have a mix of both short-term and long-term goals.
You must write out a detailed plan for accomplishing your goals. This begins with your budget.
Execute your plan! This involves discipline and perseverance.
Know your money personality.
Regularly monitor and reassess your financial plan.
Replace money myths with money truths. correct answers Explain the key components of
financial planning
Compound interest correct answers Interest paid on interest previously earned; credited daily,
monthly, quarterly or semiannually
Emergency fund correct answers Five hundred dollars in readily available cash to be used only in
the event of an emergency; the goal of the First Foundation
Interest rate correct answers Percentage paid to a lender for the use of borrowed money (in debt);
percentage earned on invested principal (in investing)
Five Foundations correct answers The five steps to financial success
Sinking fund correct answers Saving money over time for a large purchase
Budget correct answers A written cash flow plan
Cash Flow Statement correct answers A summary that shows total income and spending for a
given time period
Carbon Check correct answers A copy of each check you write
Consumer correct answers A person or organization that uses a product or service
Credit correct answers The granting of a loan and the creation of debt; any form of deferred
payment
Debt correct answers An obligation of repayment owed by one party (the debtor/borrower) to a
second party (the creditor/lender); in most cases this includes repayment of the original loan
amount plus interest
Economy correct answers A system by which goods and services are produced and distributed
Financial Literacy correct answers The knowledge and skillset necessary to be an informed
consumer and manage finances effectively
Interest correct answers A fee paid by a borrower to the lender for the use of borrowed money;
typically interest is calculated as a percentage of the principal (original loan amount)
Loan correct answers A debt evidenced by a "note," which specifies the principal amount,
interest rate and date of repayment
Personal Finance correct answers All of the decisions and activities of an individual or family
regarding their money, including spending, saving, budgeting, etc.
Personal finance refers to all the financial decisions an individual or family must make in order
to earn, budget, save and spend money over time. These decisions are generally based on a
variety of financial risks and planning for the future correct answers Why should students learn
about personal finance?
, Assess your financial situation (income, assets, and liabilities).
Set money goals! Make sure you have a mix of both short-term and long-term goals.
You must write out a detailed plan for accomplishing your goals. This begins with your budget.
Execute your plan! This involves discipline and perseverance.
Know your money personality.
Regularly monitor and reassess your financial plan.
Replace money myths with money truths. correct answers Explain the key components of
financial planning
Compound interest correct answers Interest paid on interest previously earned; credited daily,
monthly, quarterly or semiannually
Emergency fund correct answers Five hundred dollars in readily available cash to be used only in
the event of an emergency; the goal of the First Foundation
Interest rate correct answers Percentage paid to a lender for the use of borrowed money (in debt);
percentage earned on invested principal (in investing)
Five Foundations correct answers The five steps to financial success
Sinking fund correct answers Saving money over time for a large purchase
Budget correct answers A written cash flow plan
Cash Flow Statement correct answers A summary that shows total income and spending for a
given time period
Carbon Check correct answers A copy of each check you write
