Basics Beginner: Personal Finance Basics

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Choose wisely. There is only one correct answer to each question.

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1.
To encourage investors to take risks, the rewards for those investments must _______.
Choose wisely. There is only one correct answer.
Rise accordingly. Rewards generally must rise with the level of risk involved; otherwise, investors will not be attracted to them.
2.
Suppose you need to accumulate an additional $10,000 in five years to pay for college. Which of the following is true about this "goal"?
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It is clear, concise, and intermediate-term. You know how much (clear/detailed), when (concise), and that it is due in 3-7 years. Whether it is realistic depends upon whether you can save that much, doesnt it?
3.
You can find out where you are spending money needlessly by _______.
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Tracking your spending for a while. The value of tracking your spending is that you become aware of every expense you make.
4.
At what point in the process of achieving a financial goal is the goal actually achieved?
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When you have the means to satisfy it. The other steps are just preparation.
5.
A financial goal that you set might fail because it was _______.
Choose wisely. There is only one correct answer.
Any of the above. These are all things that sabotage ones efforts. Thats why clear goal-setting is needed.