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Personal Finance Study Set 15

Business

Quiz 1 :

Personal Finance Basics and the Time Value of Money

Quiz 1 :

Personal Finance Basics and the Time Value of Money

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Inflation is likely to result from:
Free
Multiple Choice
Answer:

Answer:

D

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Reduced spending causes unemployment from staff reduction.
Free
True False
Answer:

Answer:

True

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Opportunity costs may be viewed only in terms of financial resources.
Free
True False
Answer:

Answer:

False

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Inflation reduces the buying power of the dollar.
True False
Answer:
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Economics is the study of using money to achieve financial goals.
True False
Answer:
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Increased demand for a product or service will usually result in lower prices for the item.
True False
Answer:
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Higher consumer prices are likely to be accompanied by:
Multiple Choice
Answer:
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Who is most likely to benefit from inflation?
Multiple Choice
Answer:
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Present value is often referred to as compounding.
True False
Answer:
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Gross Domestic Product (GDP) measures the total value of goods and services produced within a country's borders,excluding items produced with foreign resources.
True False
Answer:
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Time value of money refers to changes in consumer spending when inflation occurs.
True False
Answer:
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Interest on savings is calculated by multiplying the principal amount times the opportunity cost times the annual interest rate.
True False
Answer:
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The main goal of personal financial planning is managing your money to:
Multiple Choice
Answer:
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Trade balance is defined as the difference between a country's exports and its imports.
True False
Answer:
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Lenders benefit more than borrowers in times of high inflation.
True False
Answer:
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Developing and using a budget is part of the "obtaining" component of financial planning.
True False
Answer:
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Planning to buy a car is an example of an intangible-purchase goal.
True False
Answer:
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Opportunity costs refer to what a person gives up when making a choice.
True False
Answer:
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Personal opportunity costs refer to time,effort,and health that are given up when a decision is made.
True False
Answer:
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A financial plan is another name for a budget.
True False
Answer:
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