1. Term that refers to managing your
The foundation of the financial
finances through budgeting, spending,
and savings: Answer: Personal Finance
2. It incorporates how you manage all
aspects of you or your family's finances -
both short-term and long-term: Answer:
Personal Finance
3. Is about making deliberate decisions
that allow you to get closer to your goals
or sudden decisions that allow you to stay
on track, even when things take an
unexpected turn. Answer: Personal
Financial Planning
4. If Expenses are more than Income,
there is a. Answer: Deficit
5. If Income is higher than Expenses, there
is a. Answer: Surplus
6. This refers to the monitoring and
maintaining of cash flow. Answer: Cash
Management
7. Total cash received during that time
period-cash outflows during the time
period=? Answer: Cash surplus or deficit
8. This presents what you own and what
you owe. Answer: Net Worth Statement
9. What is the difference between total
assets and total liabilities? Answer: Net
Worth
10. You can increase you net worth by the
following, except; Answer: Decreasing the
value of your investments and other
possessions
11. The following are cash management
strategies, except; Answer: Using savings
or borrowing to pay for current expenses
12.
services group. Answer: Banking Services
13. Answer: A checking account is cheaper
to open and maintain. There is a daily
transaction limit imposed by bank in a
savings account.(False)
14. Answer: A checking account has few
or no transaction limits. It is more
convenient and secure to have checking
account.(True)
Identification.
15. The money you take in from all
sources. (INCOME)
16. The money for any expenses that you
have.(SPENDING)
17. Any money from your income that you
do not spend but set aside for the future.
(SAVINGS)
18. Purchases that allow you to earn
future income or savings.(INVESTING)
Identify the factor that affects financial
thinking described and whether it is a
Macro or a Micro factor.
19-20. Marital status and dependents,
such as children, parents, or siblings,
determine whether you are planning only
for yourself or for others as well. Answer:
Family Structure-Micro Factor
21-22. Personal Financial Planning should
include some protection against the risk
of chronic illness, accident, or long-term
disability and some provision for short-
term events, such as pregnancy and birth.
Answer: Health-Micro Factor
23-24. This affects your financial planning
because it may have different hours, pay,
benifits, risk factors, and patterns of
advancement over time. Answer: Career
Choice-Micro Factor
34. Cash management invloves managing
day-to-day financial activities necessary to
manage current personal economic
resources while working toward long-
term financial security.(TRUE)

25-26. Over time, the economy tends to
be cyclical, usually expanding but
sometimes contracting.
Answer: Business Cycle-Macro Factor
27-28. An economy produces not just
goods and services to satisfy its members
but also jobs, because most people
participate in the market economy by
trading their labor, and mosy rely on
wages as their primary source of income.
Answer: Employment Rate-Macro
35. Cash Deficit: Money available to direct
toward your financial goals.(FALSE)
36. A person with a high net worth cannot
have financial difficulties.(FALSE)
Essay.
37-38. Explain the financial planning
process.
Answer: Defining goals, assessing the
current situation, evaluating alternative.

39-40. How can we invlove's one's family

True or False.
29. Sound personal Financial planning is
based on a thorough understanding of
your personal circumstances anf goals.
(TRUE)
in the financial plannig? Answer: Talk
about your goals, Create a money
management system, check regularly
how you've done.

30. Financial planning should take into

account the fact that periods of inflation
or deflation change the value of currency,
affecting purchasing power and
investment values.(TRUE)

31. It is human natrue to assume that

things will stay the same, but financial
planning must include the assumption
that over a lifetime you will encounter
and endure economic cycles.(TRUE)

32. Cash management involves figuring

out where you'd like to be, where you are,
and how to go from here to there.(FALSE)

33. Choices will allow faster or slower

progress toward goals: goals cannot be
eliminated nor changed.(FALSE)