Personal finance final exam - Essay Example

True 2. False 3. True 4. True 5. True 6. False 7. True 8. True 9. False 10. True 11. True 12. False 13. True 14. False 15. False 16. True 17. True 18. True 19. False 20. True 21. Liquidity 22. Property taxes 23. A mortgage 24. In which investors pay a commission (or sales charge) every time they purchase shares. 25. Forgo the opportunity to keep the cash in an interest-bearing account 26. Pay for damages that a tenant might cause during his or her occupancy 27. Speculative 28. Your current income and payment 29.

Blue chip 30. Decrease in value in secondary market 31. Net asset value 32. No load 33. Intestate 34. All these factors are vitally important 35. Executor or executrix 36. Everybody needs a financial plan to ensure that the goals of an individual are met. This can be backed up by a number of reasons. Firstly, the plan ensures that one is following the track and that he or she is headed in the right direction. The plan will enable the planner to make decision on what should be bought, amount to spend on entertainment, and even future savings (Varian, 86).

Secondly, the plan help in regulating expenses adjust some factors that led to increase in revenue and identifying risks in time. A number of steps may be considered, which include being aware of the current financial status which include expenses, savings and the income. Individual goals are a priority in this planning, by considering the current economic situation, regarding how to balance between the social needs, household needs and other luxury items. Due to uncertainties, alternative courses may be identified.

For instance increasing the amount saved with increase in returns or changing the money saving account. There is need to evaluate the plan and make changes in appropriate areas to ensure that it is up to date (Varian, 104). 37. Career would be the best choice after schooling since it gives a chance for development of the desired skills and ambitions. In addition, it will enable me focus all my energy and develop my gifts. In this regard, I will completely plan all my activities to ensure that I have utilized my talent, time, and chances to the maximum, and will need to be autonomous. 38. The best type of housing after graduating would be an apartment.

An apartment will be affordable, considering the fact that I have just graduated from college. In the same time, I am yet to have a family, which will require expanded house. 39. Sample personal balance sheet ASSETS. TOTALS Savings account 400 Vehicle 5000 Personal loans 100 Personal property 900 Others 200 Total assets 6600 LIABILITIES.

TOTALS Personal debts 120 Unsecured loan 400 Credit card 1000 Total liabilities 1520 Net worth 5080 Total assets and liabilities 6600 Table 1.

personal balance sheet (Varian, 234) Sample personal income statement Monthly Income Statement for the month of April 2012 INCOME Income from an enterprise 4000 Other income 600 Total income 4600 EXPENSES Expenses on savings 20 Food 300 Rent 300 Transport 100 Medical 300 Clothing 500 Others 100 Total expenses 1620 Net income 2980 Table 2.

Personal income statement (Varian, 258) Work Cited Varian, Hal. Microeconomics Analysis (3rd edition). New York: Norton & Company, 1992. 60-260. Print.