Question
TRUE OR FALSE __1. Inflation is a rise in the general level of prices. __ 2. In times of inflation, the buying power of the
TRUE OR FALSE
__1. Inflation is a rise in the general level of prices.
__ 2. In times of inflation, the buying power of the dollar decreases.
__3. In simple terms, interest rates represent the cost of money.
__4. Interest rates can have a major impact on financial planning.
__5. Long-term goals include buying a house.
__6. Liquidity involves the potential for lower earnings.
__7. Many companies have a policy of offering customers seasonal discounts during off-season periods.
__8. Income includes the sum of all salaries, wages and interest received from savings.
__9. When risk is high, the investment is considered aggressive or speculative.
__10. Risk can be managed.
__11. Investment assets are funds set aside for short-run or trading purposes.
__ 12. Trust is not always crucial when selecting a financial advisor.
__ 13. Marketing is customer driven, which means selling whatever the company can make without considering the customers wants and needs. _
_14. Consumers are never subjected to deception from the media.
__15. Impulse buying never results in overspending.
__16. Buying a house is a big investment and involves little or no preparation.
___17. A budget is often necessary for people to live within their means and manage spending. _
__18. Propaganda appeals often engage the buyer to indulge and spend more.
___19. Seasonal variations offer reductions of the basic list price when the demand has declined because of a change in climatic or holiday conditions.
___20. Situational factors may influence the buyers choice such as the physical surroundings.
___21. When buying a home, financing includes the source of money, costs, terms and conditions.
___22. Renting is a consideration when saving for a down payment.
___ 23. When taking financial risks, the investment is considered conservative when risk is high.
___ 24. Arranging a home inspection is NOT one of the steps in the process of buying a home.
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