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Questions and Answers of
Personal Financial Planning
Explain the difference between a bull market and a bear market.
Explain how a diversification strategy can lower risk.
Explain the dollar-cost averaging strategy.
Explain how to use a systematic strategy for saving and investing.
8. Describe the possible tax advantages of long-term saving and investing.
7. How are tax-free earnings different from tax-deferred earnings?
6. Name some events that might affect political risk.
5. What is inflation risk?
4. What is a bond?
3. What is investment risk? What are some factors that can affect investment risk?
2. Describe the ideal investment.
1. Explain how risk and return are related to each other.
Describe the possible tax advantages of long-term saving and investing.
List some types of risk that savers and investors may face.
Discuss the concept of risk versus return.
7. When should you begin retirement planning?
6. What is financial security?
5. Why does meeting long-term goals often require saving and investing? Give two examples of long-term goals that can be met with money from investments.
4. What is an emergency fund, and why should you have one?
3. List three short-term goals that could be reasons for saving.
2. Why are savings accounts often safer than other investments?
1. How is investing money different from saving money?
Explain what is meant by retirement planning.
Describe the concept of financial security.
Describe reasons for saving and investing.
Explain the difference between saving and investing.
* Describe the role of regulatory agencies in the investment industry.
* Explain how to buy and sell securities.
* List sources of investment information.
* Describe investment options and how they relate to risk and return.
* Describe investment strategies.
* Explain principles of saving and investing.
* List reasons for savings and investing.
2. Prepare a 4- to 5-minute speech on identity theft. Include these points in the speech along with others you think are important:An explanation of identity theft Types of crimes related to identity
1. What are two credible resources you can use to find information on identity theft?
21. The process of taking an asset used for collateral, such as a car, and selling it to pay a debt is called .
20. A legal process a creditor can use to force the sale of mortgaged property to repay the mortgage when a borrower does not make mortgage payments is called .
19. The is a federal law that requires that consumers be fully informed about the true cost of credit.
18. A document that gives a person’s credit history and current status with regard to credit and income is called a(n) .
17. A fake offer, sale, or other gimmick, called a(n) , is designed to cheat consumers.
16. Borrowing money using the equity in your home as security is getting a(n) .
15. Records that can be used to support a claim, also known as, can help win an adjustment to a credit account.
14. When a debtor gets behind in making payments, the account is said to be in .
13. A type of bankruptcy called is also known as straight bankruptcy.
12. A federal law, the , prohibits abusive practices when collecting debt.
11. When someone intentionally uses another person’s credit card to steal money, that is called .
10. A(n) is property a debtor is allowed to keep in a bankruptcy proceeding.
9. A proceeding in which a creditor may legally take possession of money or goods held by a third party in payment of a borrower’s debt is called .
8. A court order called a(n) pardons a debtor from paying debts.
7. A remedy or action taken to seek aid, such as for the correction of an error in a credit account, is called .
6. In a type of bankruptcy called , the debtor repays part or all of the unsecured debt over 3 to 5 years.
5. The is a federal law giving consumers the right to know what is in their credit file and to challenge information in the file.
4. A federal law that makes discrimination in the granting or denial of credit illegal is the .
3. is a legal procedure to relieve a person who cannot pay debts of those debts or to create a payment plan for paying some of the debts.
2. The is a federal law requiring creditors to resolve disputes in billing within a specified period of time.
1. Getting a loan to pay off other debts is called .
3. Search for more information to answer these questions:What is the nature of the work this job involves?What is the job outlook for this job?What training or qualifications are needed for this
1. Choose a job in architecture and construction to explore further.
3. You took your car in to have the brakes replaced. When the mechanic did the job, he also found that your muffler needed replacing. You authorized him to do the work. After you got home, you
2. A representative from your bank called and told you about a special offer—a free safe deposit box and a $50 gift—if you upgraded your account. You verified your personal information with the
1. You tried to use your credit card, and it was rejected. When you called your credit card company, you were told that your balance is over the limit. You have not used your card in the last week.
10. Describe the process of going to court to file a lawsuit to settle a dispute
9. Describe three types of alternate dispute resolution.
8. List some activities that the law does not allow in the collection of credit debts.
7. List the items that cannot be the basis for discrimination in the granting or denial of credit.
6. Explain the procedures for resolving errors under the Fair Credit Billing Act.
5. List the basic provisions of the Truth-in-Lending Act.
4. How often can you see your credit report (without charge)? What Web site can you use to get a free credit report?
3. What can you do if you are denied credit?
2. What is the purpose of a credit score? How can you find your credit score?
1. What is the purpose of a credit report? What kind of information does a credit report contain?
List credit scams and ways to protect yourself from them.
Describe the process of resolution through filing a lawsuit.
Explain the process of alternate dispute resolution.
State the purposes of several consumer protection laws.
Explain consumer rights related to denied credit.
Explain the purpose of a credit report and credit score.
8. What is meant by bankruptcy fraud?
7. How is Chapter 13 bankruptcy different from Chapter 7 bankruptcy?
6. What are bankruptcy exemptions?
5. Why is Chapter 7 bankruptcy also called liquidation?
4. What are the two purposes of bankruptcy law?
3. How is debt management different from debt consolidation?
2. Explain how credit counseling can help to avoid bankruptcy.
1. What are some reasons people get into extreme debt and seek bankruptcy?
Explain bankruptcy exemptions and how they affect consumers.
Describe Chapter 13 Wage Earner Plan bankruptcy.
Describe Chapter 7 Liquidation bankruptcy.
List strategies to help avoid bankruptcy.
Explain the purposes of bankruptcy.
7. Describe what you can do to prevent garnishment or repossession of assets.
6. What is a collection agency? Why might your credit account be turned over to a collection agency?
5. What does the term delinquency mean as it relates to a credit account?
4. List three federal government agencies that help protect consumers. Give a brief description of what each agency does to help consumers.
3. Explain the purpose of consumer advocacy groups.
2. List ways you can protect yourself from credit card fraud.
1. Explain how to dispute an error on your credit statement.
List ways to prevent garnishment and repossession of assets.
Explain how government consumer protection services help consumers.
Describe the purpose of consumer advocacy groups.
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