1. our financial decisions decrease once we reach adulthood.
true
false

2. each action you might take in reaching your goal has risks or costs.
true
false

3. as we age, the number and complexity of the financial decisions that we make increases.
true
false

4. although some families have more resources than other families, there are a limited amount of resources with which families have to work.
true
false
5. reviewing your spending habits rarely provides useful information to you reach your financial goals.
true
false
6. what is the final step in personal financial planning?
setting goals.
reviewing and revising goals.
creating strategies for meeting goals.
none of the above.

7. the rise or fall in the price of an item is an example of which of the following?
inflation risk
personal risk
income risk
interest rate risk

8. what should be left out of financial decisions whenever possible?
emotion
shared decision-making
financial plans
all of the above

9. unemployment is an example of which of the following?
inflation risk
personal risk
income risk
interest risk

10. what is the first step in financial planning?
analyzing the current situation.
identifying goals.
coming up with strategies for meeting goals.
assess the advantages and disadvantages of different strategies.

11. what is true about financial planning?
only short term goals are important.
once you have a plan, you shouldn't need to revise it.
financial plans should be reviewed regularly.
all of the above.

12. what is a disadvantage of shared decision-making?
multiple viewpoints.
discussing the pros and cons of the decision.
creating a less impulsive or emotional decision.
it can create competition between individuals who want to “win” the decision.

13. what is true about emotions and financial decisions?
you should only make financial decisions when you are in a good mood.
you should only make financial decisions when you are in a bad mood.
you should try to leave emotions out of financial decisions.
emotions have no impact on financial decisions.

14. what is an amount of money multiplied by the interest rate and the amount of time that the money will be earning interest?
present value
future value
past value
none of the above

15. interest rate risks would be most relevant to what purchase?
airline tickets
]a house
a sweater
patio furniture