1. (p. 3) Personal financial planning is the process of managing your money to achieve personal economic satisfaction.
2. (p. 4) A financial plan is an informal report that analyzes past financial decisions.
3. (p. 4) A financial plan is another name for a budget.
4. (p. 4) Financial Plans are only created by financial planners.
5. (p. 5) The life situation of a household has little influence on personal financial planning decisions.
6. (p. 5) The long-term goals for a young single will probably be the same as those for an older couple with no dependent children at home.
7. (p. 6) Inflation is most harmful to people with incomes expected to increase.
8. (p. 6) Inflation reduces the buying power of money.
9. (p. 6) When prices are increasing at a rate of 6 percent, the cost of products would double in about 12 years.
10. (p. 7) Higher inflation usually results in lower interest rates.