Personal Finance Assessment 1

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Assignment 1: Economic Basics (24.0 points) 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) It can help give you financial security. Also it can help your money grow. These are important because you need to know what goes in and what goes out. It’s easy to steal from those who don’t pay attention. Also If you are paying attention to your spending’s, you can decide to cut back on the unnecessary things you pay for. This will allow your money to grow. 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) A Portable Speaker and a game called “ROCKSMITH 2014 EDITION”. 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) Mixed Martial Arts Training and Skate lessons. 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) Inflation can be a problem with storing money to store value, or a plus. When inflation goes up, the value of a dollar goes down and you now need more money to pay for the item you could have bought before inflation went up. But if inflation goes down your dollar is worth much more! 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) I would first look for a high employment rate which means business are expanding and

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