1. Will a good financial plan created at the age of 30 typically last a lifetime? Why?

2. True/False Defining financial goals is an important first step in personal financial planning process.

3. The last step in the financial planning process is to

a. develop financial plans and strategies to achieve goals.

b. use financial statements to evaluate results of plans and budgets, taking corrective action as required.

c. implement financial plans and strategies.

d. redefine goals and revise plans and strategies as personal circumstances change

e. periodically develop and implement budgets to monitor and control progress toward goals.

4. What is the difference between monetary and fiscal policy

5. Becky graduated with a master degree in Personal Financial Planning. After working two years in a small financial planning firm, Becky earns $60,000 annually and saves $10,000 a year. What is her average propensity to consume?

a. 16.7%

b. 25.5%

c. 75.7%

d. 83.3%

e. 95.5%