7) To develop financial goals, one should A) Set several general goals for the short-term B) Not worry about whether or not the goals can be achieved based on one's income and life situation C) Identify specific, realistic goals that are measurable, and articulate a time frame and an action plan D) Only set long-term goals after short-term goals have been accomplished E) Focus on intermediate goals first 8) Opportunity cost refers to A) Evaluating different alternatives for financial decisions. B) The amount paid for taxes when a purchase is made. C) The trade-off of a decision. D) Current interest rates. E) Money needed for major consumer purchases. 9) The time value of money refers to A) Personal opportunity costs such as time lost on an activity. B) Financial decisions that require borrowing funds from a financial institution. C) Increases in an amount of money over time as a result of interest earned D) Changing demographic trends in our society. E) Changes in interest rates due to changes in the supply and demand for money in our economy. 10) 10) To calculate the time value of money, we need to consider all of the following except the A) Length of time the money is on deposit. B) Type of investment. C) Principal D) Payment/deposit stream. E) Annual interest rate. 11) 11) Steve Wilson wants to deposit $150 per month into an account earning 4 percent for the next 3 years, so he can purchase a used car at that time. What type of computation would he use to determine the amount he will have for his purchase? A) Simple interest B) Future value of a single amount C) Present value of an annuity D) Present value of a single amount E) Future value of an annuity