Unit 3

Question 1

A plan for future spending and saving

Answer 1

Budget

Question 2

Looking to future income and expenditures. Answers two main questions
-what time will budget cover?
-how will you keep your records

Answer 2

Forecasting

Question 3

Calculating net cash flow and using budget in day to day life

Answer 3

Implementation

Question 4

Process of adjusting budget to fit requirements

Answer 4

Reconciling a budget

Question 5

You must review if you are sticking to budget

Answer 5

Monitoring

Question 6

Occurs when actual expenses are difficult from your expected expenses budgeted

Answer 6

Budget variance

Question 7

After a period of time, you should review your budget to see if you can improve it

Answer 7

Revising

Question 8

Management of cash payments and liquid investments

Answer 8

Cash Management

Question 9

A fund that you can turn to in an event of an emergency

Answer 9

Cash reserve

Question 10

Include commercial banks, several types of savings institutions, and credit unions.

Answer 10

Depository institutions

Question 11

Government sponsored insurance agency that covers funds in deposit institutions

Answer 11

FDIC (Federal Deposit Insurance Corporation)

Question 12

Includes mutual fund companies, life insurance companies, brokerage firms, and other financial service firms

Answer 12

Non-depository institutions

Question 13

Demonstrates amount of interest paid per year

Answer 13

Annual Percentage Yield

Question 14

Method of calculating the time required for a sum of money to double by dividing 72 by the rate of interest earned on the money

Answer 14

Rule of 72