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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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