1. Present value computations are used to determine how much you need to deposit now so that you can withdraw a specified amount for a set number of years. TRUE OR FALSE

2. Gross domestic product (GDP) measures the total value of goods and services produced within a country's borders, excluding items produced with foreign resources. TRUE OR FALSE

3. Which of the following are benefits to financial literacy?

a. Increased effectiveness in obtaining, using, and protecting financial resources

b. Expanded control of financial activities

c. Avoidance of excessive debt, bankruptcy, and dependence on others for financial security

Answers: only a? only b? only c? only a and b? all choices are correct?

4. The main goal of personal financial planning is managing your money to:

Multiple Choice

save and invest for future needs.

reduce a person's tax liability.

achieve personal economic satisfaction.

spend to achieve financial objectives.

save, spend, and borrow based on current needs.