Topic 7 DQ 2

Explain the idea of mental accounting. Group of answer choices   Mental accounting refers to the way we emotionally account for ups and downs of our lives.   Mental accounting refers to the interest rate we use when we calculate the present value of future mental assets.   Mental accounting is the way people keep track of their mental assets and liabilities.   Mental accounting is the notion of putting dollars in different mental categories where they take different values.

You have two investments that have positive net present values and are financially feasible. Your boss wants you to make a recommendation on which one of the two to invest in given different useful lives? How do you account for this/make the decision?

True or False. 1. In determining the direction of financial goals, one has to decide whether to continue the same course of action, expand or change the current situation. 2. Opportunity cost is expressed in monetary terms. 3. Personal financial plan helps a person remain financially solvent. 4.

Please solve the following

Which of the following is not one of the most important questions to be asked when starting your business? Will you buy insurance for your business? Where will you get the long-term financing to pay for your investments? Will you bring in other owners, or will you borrow the money? How will you manage your everyday financial activities? What long-term investments should you take on?

Personal financial management topics.( Investment) Paragraph should include topic, why you feel this was helpful and how this information will help you in the future

Why do you think people have such a hard time with long-term goals like saving for retirement, getting life insurance or estate planning, yet see the need and importance for this type of think for small things?

o Describe in detail how you are financing your college education. Include sources like scholarships, loans, family contributions, part- time jobs, savings, grants, etc. o How did you secure these financial resources? What challenges did you face in the process?

In his best seller Wealth Without Risk, Charles J. Givens, the self-styled expert on “low-risk ways to achieve and hold on to wealth,” offers the following advice as his  strategy #32: “Buy disability insurance only if you are in poor health or accident prone.” What is your reaction to this “strategy?”

Sophia Martinez wants to travel after she retires as well as pay off the balance of the loan she has on the home she owns. whi planning process does this situation demonstrate? Multiple Choice Determining her current financial situation Developing her financial goals Identifying alternative courses of action Evaluating her alternatives Implementing her financial plan

Financial wellbeing is more than just having enough money to pay bills and meet basic needs. It also encompasses a sense of control over one’s finances, the ability to handle unexpected expenses, and the freedom to make choices that align with one’s values and goals without financial constraints. Financial well-being contributes to overall happiness and life satisfaction, provides a sense of peace of mind, and reduces stress and anxiety. One of the main issue of financial dilemma is debt. Discuss your view on debt - the pros and the cons and what is your stand.

There are many ways to invest money. Jaleel wonders what are the investment options he can choose from. Choose three asset classes from the list below and help Jaleel to have a closer look at each of them. You are expected to explain the unique characteristics of the asset class, their associated risks and potential returns. For each asset class, you should use one or two examples to support your explanation. Asset Class Characteristics Risk Potential Returns Example Cash Products Fixed Income Equities Currencies Derivatives