Personal Finance

1. Describe two examples of important things that financial planning skills can help you do, and explain why these things are important to you personally. (4-6 sentences. 2.0 points)

Two examples of important things that financial planning skills can help you do are planning for retirement and creating a budget. Planning for retirement can make for a better and easy future. Planning for retirement will also help you learn how to make investments and save money. Creating a budget will help you not spend more money than you have. Creating a budget will also help you stay out of debt.

2. List two examples of goods you have purchased in the past or may purchase in the future. (Complete sentences are not necessary. 0.5 points)

Two examples of goods I have purchased in the past are cloths and milk.

3. List two examples of services you have purchased in the past or may purchase in the future. (Complete sentences are not necessary. 0.5 points)

Two examples of services I have purchased in the past are babysitting and a carwash.

4. One of the functions of money is as a store of value. How does inflation affect money's ability to store value? (3-6 sentences. 2.0 points)

The functions of money are to serve as a medium of exchange, a unit of account, and a store of value. Inflation mainly affects the ability of money to serve as a store of value, since inflation erodes money's purchasing power, making it less attractive as a store of value. "Inflation" is defined as an increase in the overall level of prices over an extended period of time.

5. Imagine that you are considering moving to a new country and looking for a job there, but you first want to make sure the country has a strong economy. Describe at least three economic factors that you would want to research as evidence of the economy's strength or weakness, and explain how each factor would affect your decision to move there. (4-6 sentences. 3.0 points)

Three economic factors that you would want to research as evidence of an economy's strength or weakness are fuel prices, transportation, and demand for labor. If the fuel prices are high it would make it difficult to travel, or it would result in losing a tremendous amount of money. If there is a poor transportation system it will make it very difficult to get to and from places. Possibly playing a huge factor in getting a job. If there is a low demand for labor it will be very hard to find a job. If you cannot find a job you will be unable to support yourself.