FCS 340 Test 1 Actual Exam Questions 100% Correct Answers Verified 2024 Version
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Higher consumer prices are likely to be accompanied by _______ interest rate. - higher
What is the definition of economics? - Study of how wealth is created and distributed
What is the Fed? - Federal Reserves
What is the main responsibility of the Fed? - Regulate national money supply
The "obta...
FCS 340 Test 1 | Actual Exam Questions
| 100% Correct Answers | Verified
2024 Version
Higher consumer prices are likely to be accompanied by _______ interest rate. - ✔✔higher
What is the definition of economics? - ✔✔Study of how wealth is created and distributed
What is the Fed? - ✔✔Federal Reserves
What is the main responsibility of the Fed? - ✔✔Regulate national money supply
The "obtaining" component of financial planning is defined - ✔✔Foundation of financial planning,
resources used for all financial activities
What is liquidity refer to? - ✔✔Be able to take financial resources and convert to cash
What goals should be considered as a part of the saving component of financial planning? -
✔✔Emergency fund of $1,000 minimum
Define financial plan - ✔✔Formalized report that summarizes your current financial situation, analyzes
your financial needs and recommends future financial activities
What determines the success or failure of a financial plan - ✔✔Success- must coordinate various
components through an organized plan and wise decision making
Short term, intermediate, and long term goals - ✔✔Short term- within next year
intermediate- 2-5 years
long term- 5+ years
, Smart Goals - ✔✔Specific, measurable, action oriented, realistic, time based
What is opportunity cost? - ✔✔what a person gives up by making a choice
What is the time value of money? - ✔✔Increase in an amount of money as a result of interest earned
The amount of interest is determined by multiplying the amount in savings by the _______ interest rate
and the _______ periods - ✔✔annual, time
Future value calculations are also referred to as - ✔✔compounding
What is inflation risk? - ✔✔danger of loss buying power due to using prices
When should you evaluate and revise your actions in your financial plan - ✔✔Change of income- change
of family situation
Give an example of long-term financial strategy - ✔✔pay off consumer debts, home mortgages
An example of goals of a short-term financial objective - ✔✔create and implement a budget
What type of records should be kept in a home file? - ✔✔birth, marriage, death certificates,
custody/adoption papers, list of checking/savings account numbers, serial numbers, valuable photos,
mortgage papers, copy of will, stock and bond certificate
What type of financial documents would most likely be stored in a safe deposit box? - ✔✔Personal
employment records, money management records, tax records, financial services, auto, housing,
insurance, investment records
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