CHAPTER 1 Flashcards
is the process of managing your money to achieve personal economic satisfaction.
Personal Financial Planning
Give at least 2-4 advantages of Financial Planning
- Increased effectiveness in obtaining, using, and protecting financial resources
- Increased control of your financial affairs
- Improved personal relationships
- Sense of freedom from financial worries
The stages in the family situation and financial needs of an adult
Adult Life Cycle
Some of example of this kind of factor are Marital Status, Household Size, Employment
Life situation Factors
The ideas and principles you consider correct, desirable,
and important
Values
What are the two type of influence in economic
- Domestic
- Global
facilitate financial planning activities. These include:
◦ Investing in a bond
◦ Investing in stock
◦ Buying and selling mutual funds
Daily economic transactions
is the study of how wealth is created and distributed.
Economics
attempts to maintain an adequate money supply to encourage consumer spending, business growth, and job creation.
Federal Reserve System
What are the four Financial System
Provider
User
Financial intermediaries
Financial Market
Us Economy is affected by__
Level of imports/exports affects the ___
Level of foreign investment affects the ____
Money supply affects the _____
- Foreign investors
- Available supply of dollars
- Domestic money supply
- Consumer interest rates
Increase in the general level of prices
Inflation
It measure of inflation
CPI
Reduces buying power of the dollar and known as most harmful to those on fixed incomes
Inflation
Decline in prices
Deflation
