UL 1. Briefly define the six steps you follow for your financial planning 2. What are your options if your annual budget shows that you will have a deficit? a) Either liquidate enough savings and investments or borrow enough to meet the total budget shortfall for the year. b) . Cut low-priority expenses from the budget. c) Increase your income. d) All of the above 3. Annuity is defined as: a) Annual income tax b) An annual return on investment c) An annual profit d) A stream of equal payment at equal interval time periods. 4. The time value of money is defined as: a) The ratio of the time period to the value of the money b) The increase in the value of the money as the time goes by c) The purchase power of the dollar decreases as the time goes by d) b) and c) 5. Your furniture and jewelry should be consider as part of your a) Expenses. b) Fixed Assets. c) Current Assets d) Income. 6. Your net worth is defined as: a) The amount of money in your saving account b) The amount of money in your saving c) Your total assets that you own minus total liabilities that you owe d) All of the above 7. Changes in the cost of living are: a) Not a factor when preparing a budget b) Constant from month to month c) Different in various geographic area d) The same for different locations