Post test

Google.comNAME: JOELYN SAMUDIO SCORE:

SECTION: 3C DATE:

TRUE or FALSE (Direction: Write “T” if the statement is correct. If not, write “F if not.)
T 1. Personal finance is the financial management than an individual or a
family unit performs to budget, save, and spend monetary resources over time,
considering various financial risks and future life events.

T 2. A financial plan can be no better than the data upon which it

is based that is why periodic reviews and revisions of the plan are essential to account
for the changes in personal and economic conditions.

F 3. Insurance or Adequate Protection deals with the analysis of how to protect a

household from unforeseen risks be determining how much insurance to get, at the
most cost- effective terms.
T 4. Estate planning involves planning for the disposition of one's assets before death.
F 5. Personal financial planning provides a person with a short-term strategy, taking
into consideration every aspect of the financial situation and how each affects the
ability to achieve goals and objectives for financial future.

T 6. Financial planning should focus on all the physiological and financial factors that
may have an impact on the financial goals and objectives.

F 7. In 2009, Dan Ariely suggested that the 2008 financial crisis showed that human
beings do not always make rational financial decisions, and the market is not
necessarily self- regulating and corrective of any balances in the economy.

T 8. Cash Management is the soul of the financial planning, whether a person is an

employee or planning for retirement who seeks to know how much he/she spends
prior to retirement so that a significant amount can be saved.

T 9. When the value of a currency increases, an economy has deflation.

T 10. Personal finance must be learned during the mature stage, in order for the
individual to differentiate between needs vs. wants and plan accordingly.
TEST I (continuation) – TRUE or FALSE (Direction: Write “T” if the statement is
correct. If not, write “F” If not.)
F 11. An increase in cash flow leads to an increase in capital that allows an individual
to consider investments to improve overall financial well-being.

T 12. A depreciating asset is an asset that loses value over time or with use such as the
vehicle that a person owns, boats, and capitalized expenses.

T 13. Net worth is a person's balance sheet, calculated by subtracting all

liabilities of the household from the sum of all assets under that person's control, at
one point in time.

F 14. If one’s money stays in the current account without any financial activity, its
value shrinks against deflation or other kinds of financial factors.

T 15. Deferred gratification is the inability to resist the temptation for an immediate
reward and wait for a later reward.