Higher interest rates can be caused by:
1) a lower money supply.
2) an increase in the money supply.
3) a decrease in consumer borrowing.
4) lower government spending.
5) increased saving and investing by consumers.
Increased demand for a product or servi
Learning Objective 1: Analyze the process for making personal
1. Personal Financial Planning - The process of managing your money to achieve personal economic
2. Advantages of Personal Financial Planning are:
Learning Objective 1 Analyze factors that affect the selection and use
of financial services.
1. Banks, savings and loan associations, credit unions, and other financial institutions provide
payment, savings, and credit services
2. Today, bankin
Learning Objective 1: Recognize relationships among financial
documents and money management activities.
1. Daily spending and saving decisions are the center of financial planning
2. Decisions must be coordinated with needs, goals, and personal
Chapter 1 Personal Financial Planning: An Introduction
1. Financial planning has specific techniques that will be effective for every individual and
Answer: False Difficulty: Med LO: 1 Page: 4
2. Opportunity costs r
Chapter 7 Choosing a Source of Credit: The Costs of Credit Alternatives
1. By evaluating your credit options, you can reduce your finance charges.
Answer: True Difficulty: Easy LO: 1 Page: 200
2. After you have selected a prod