801. Which of the following is the least likely way that you may benefit from having an understanding of personal finance?
A. Assessing the advice of financial advisers
B. Becoming the president of a large national bank
C. Making your own financial decisions
D. Becoming a financial adviser
802. (n) __________ represents what you give up as a result of making an alternative decision.
A. purchase price
B. financing cost
C. opportunity cost
D. liquidity need
803. A __________ is not a key component of a complete financial plan.
A. plan for working at a major brokerage firm
B. plan to manage your liquidity
C. budget plan
D. plan for financing (managing your credit and loans)
804. Your __________ is (are) the value of what you own minus the value of what you owe.
A. net assets
B. budget
C. net liabilities
D. net worth
805. __________ is access to funds to cover any short-term cash deficiencies.
A. Liquidity
B. Credit management
C. Money management
D. Cash management
806. Having a __________ level of future wealth (from more savings) requires you to sacrifice by having a __________ level of spending today.
A. lower; lower
B. higher; lower
C. higher; higher
D. None of these
807. Which of the following is not a credit management decision?
A. Financing your house with a mortgage
B. Using credit cards to pay your utility bills
C. Obtaining a bank loan to purchase a boat
D. Investing money in a bank deposit
808. The management of your loans would include
A. selecting a loan that charges a competitive low interest rate.
B. determining how much you can afford to borrow.
C. determining the maturity (length of time) of the loan.
D. All of the above
809. __________ planning involves determining how much you should set aside each year for retirement and how you should invest those funds in the short term.
A. Tax
B. Retirement
C. Estate
D. None of these
810. Which of the following pieces of information will not be needed to ascertain the break-even volume level?
A. Selling price
B. Variable cost per unit
C. Total direct costs
D. Fixed overheads