Financial Management and Securities Markets Answer the following questions in paragraph, full-sentence format. Define personal finances and financial planning. Explain the financial planning life cycle. Identify the three stages of the personal-finances planning process Discuss the trend in the U.S. savings rate. Define a subprime loan and explain the difference between a fixed-rate mortgage and an adjustable-rate mortgage. Discuss what can go wrong with a subprime loan at an adjustable rate. Discuss what can go wrong with hundreds of thousands of subprime loans at adjustable rates. Exercise 1: Think of the type of job youd like to have. Describe the job and indicate how youd go about getting a job offer for this type of job. How would you evaluate competing offers from two companies? What criteria would you use in selecting the right job for you? Exercise 2: Youre looking forward to taking a month-long vacation to Australia when you graduate from college in two years. Create a budget for this trip after researching likely costs. Determine how much youll need for the trip and calculate how much youd have to save each month to afford the trip.