Financial Analysis

Question 1

Explain forms of financial exchange (cash, credit, debit, electronic funds transfer, etc.) (FI:058) (PQ)

Question 2

Identify types of currency (paper money, coins, banknotes, government bonds, treasury notes, etc.) (FI:059) (PQ)

Question 3

Describe functions of money (medium of exchange, unit of measure, store of value) (FI:060) (PQ)

Question 4

Describe sources of income (wages/salaries, interest, rent, dividends, transfer payments, etc.) (FI:061) (PQ)

Answer 4

Transfer payment - a payment made or income received in which no goods or services are being paid for, such as a benefit payment or subsidy.

typically from the government

Question 5

Explain the time value of money (FI:062) (CS)

Question 6

Explain the purposes and importance of credit (FI:002) (CS)

Question 7

Explain legal responsibilities associated with financial exchanges (FI:063) (CS)

Answer 7

Honestly (no fraud), Confidentiality, Set to maintain balance and the greater good of the society

Operate within boundaries set by the various commissions and agencies at every level of the government

SEC (Securities and Exchange Commission), GAAP, used in accounting, 10k, 10q, press releases

Uniform Commercial Code (UCC)/court may find that a sale/contract is unconscionable, or grossly unfair to one party or another. In such a case, the contract may be voided or limited. Another example is lien.

Capacity to pay; rules and regulations to govern acceptable conduct in exchanges

Question 8

Explain the need to save and invest (FI:270) (CS)

Question 9

Set financial goals (FI:065) (CS)

Question 10

Develop personal budget (FI:066) (CS)

Question 11

Determine personal net worth (FI:562) (CS)

Question 12

Explain the nature of tax liabilities (FI:067) (PQ)

Question 13

Interpret a pay stub (FI:068) (PQ)

Question 14

Prepare bank account documents (e.g., checks, deposit/withdrawal slips, endorsements, etc.) (FI:560) (PQ)

Question 15

Maintain financial records (FI:069) (PQ)

Question 16

Read and reconcile bank statements (FI:070) (PQ)

Question 17

Calculate the cost of credit (FI:782) (CS)

Question 18

Demonstrate the wise use of credit (FI:071) (CS)

Question 19

Validate credit history (FI:072) (CS

Question 20

Make responsible financial decisions (FI:783) (CS)

Answer 20

opportunity cost, saving, investing

Question 21

Protect against identity theft (FI:073) (CS)

Question 22

Pay bills (FI:565) (CS)

Question 23

Apply for a consumer loan (FI:625) (SP)

Answer 23

A consumer loan is a loan given to consumers to finance specific types of expenditures.

Collateral

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Question 24

Control debt (FI:568) (CS)

Answer 24

Debt consolidation

Question 25

Prepare personal income tax forms (FI:074) (CS)

Question 26

Discuss the nature of retirement planning (FI:569) (CS)

Question 27

Explain the nature of estate planning (FI:572) (CS)

Answer 27

https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.fool.com%2Fretirement%2Festate-planning%2F&psig=AOvVaw22aBpDDzEms6nylSWtWznc&ust=1707890922840000&source=images&cd=vfe&opi=89978449&ved=0CBMQjRxqFwoTCKis8NTTp4QDFQAAAAAdAAAAABAE