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Pre Test
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1
Short-term goals are often a point of departure toward achieving long-term goals.
A)True
B)False
2
Opportunity costs are incurred in the process of decision-making.
A)True
B)False
3
Short-term goals are usually achieved within the next few years.
A)True
B)False
4
Liquidity is related to the ease of conversion of financial resources into usable cash.
A)True
B)False
5
A financial plan should be realistic, measurable, and have a specific time interval.
A)True
B)False
6
The first thing to do in making your financial plan is to
A)develop specific financial goals.
B)put it into action.
C)analyze your current personal and financial situation.
D)review and revise your actions.
E)establish a plan of action.
7
The final part of a proper financial planning process is to
A)work toward your financial goals.
B)create a financial plan of action.
C)analyze your current personal and financial situation.
D)plan your retirement.
E)evaluate and revise your actions.
8
Opportunity costs are
A)the costs related to stock investments.
B)the trade-off of a decision.
C)the amount paid in taxes when making a purchase.
D)current interest rates at the time of purchase.
E)evaluating different alternatives for financial decisions.
9
The uncertainty associated with decision making is referred to as
A)the opportunity cost of a decision.
B)inherent to the selection of alternatives.
C)financial constraint.
D)just too bad.
E)risk.
10
Which of the following goals would be the easiest to implement and measure?
A)"We should reduce our debt payments."
B)"I want to save money for my annual vacation."
C)"I'd like to save $100 a month to create a $4,000 emergency fund."
D)"I want to invest $2,000 a year for my retirement."





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