Download Week One: Personal Financial Planning

Midterm Quiz Study Guide
FP/101 Version 5
University of Phoenix Material
Midterm Quiz Study Guide
Purpose: The purpose of this study guide is to assist in preparation for the midterm quiz.
How to use this study guide: Use this study guide to review the content covered in each week of the
course. The guide highlights the relevant weekly readings and focuses on the important content areas
within the readings. Consult the sample quiz for examples of the types of questions found in the midterm
quiz .
Week One: Personal Financial Planning
Objective
What to Study
List the five steps in the personal
financial planning process.
Ch. 1 of Personal Finance

The Personal Financial Planning Process
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Summarize what influences
personal financial planning.
Ch.1 of Personal Finance

Factors That Influence Personal Financial Planning
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Identify parts of a financial plan.
Step 1: Analyze Your Current Financial Position.
Step 2: Develop Short-Term and Long-Term Financial
Goals.
Step 3: Identify and Evaluate Alternative Strategies for
Achieving Your Goals.
Step 4: Implement a Plan for Achieving Your Goals.
Step 5: Regularly Re-evaluate and Revise Your Plan.
Changing Needs Over the Life Cycle
Values and Attitudes
Life Situation
General Economic Conditions
Ch.1 of Personal Finance
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Elements of a Comprehensive Financial Plan
Making Effective Decisions
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Making Reasonable Assumptions
Applying Marginal Reasoning
Considering Opportunity Costs
Using Sensitivity Analysis
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Midterm Quiz Study Guide
FP/101 Version 5
Week Two: Money Managment
Objective
What to Study
Describe how to organize and
prepare personal financial
statements.
Ch. 2 of Personal Finance

Collecting and Organizing Your Financial Information
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Why You Need to Save Bills and Documents
How Long You Should Save Documents
Where You Should Keep Documents
Using Personal Financial Statements
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Preparing a Personal Balance Sheet
Valuing Your Assets and Debts
Calculating Your Net Worth
Ch. 4 of Personal Finance
Identify cash management
products and services.
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Cash Management Products and Services
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Complete a personal cash flow
statement.
Checking Accounts
Savings Accounts
Savings Alternatives
Other Cash Management Products and Services
Evaluating Your Options
Ch. 2 of Personal Finance

Using Personal Financial Statements
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Preparing a Personal Cash Flow Statement
Week Three: Consumer Credit
Objective
What to Study
List types of consumer credit.
Ch. 5 of Personal Finance

What is Consumer Credit?
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Identify the five C’s of credit.
Advantages of Consumer Credit
Disadvantages of Consumer Credit
Consumer Credit and the Economy
Types of Consumer Credit
Ch. 5 of Personal Finance

Applying for Credit
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Midterm Quiz Study Guide
FP/101 Version 5
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The Five C’s of Credit
Week Four: Credit Protection and Repair
Objective
What to Study
Recognize the advantages and
disadvantages of credit cards.
Ch. 5 of Personal Finance

Credit Cards
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Advantages and Disadvantages of Credit Card Use
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Summarize how to protect and
correct credit.
Types of Cards and Contract Terms
Choosing Cards Based on APR
Advantages of Using Credit Cards
Disadvantages of Using Credit Cards
Ch. 5 of Personal Finance

Protecting Your Credit and Correcting Credit Mistakes
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Rights in Obtaining Credit
Credit Reporting
Correcting Errors on a Credit Report
Billing Statements and Debt Collection
Advantages and Disadvantages of Credit Card Use
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Disadvantages of Using Credit Cards
Figure 5-2
Week Five: Avoiding and Managing Debt
Objective
What to Study
List good practices for managing
debt.
Ch. 6 of Personal Finance
 Characteristics of Consumer Loans
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Interest Rates
Payment Arrangements
Secured and Unsecured Loans
 Types of Consumer Loans
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Home Equity Loans
Automobile Loans
Student Loans
 Sources of Consumer Loans
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Midterm Quiz Study Guide
FP/101 Version 5
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Depository Institutions
Consumer and Sales Finance Companies
Other Sources of Consumer Loans
 Managing Your Debts
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Signs of Credit Trouble
Getting Out of Debt
Ch. 6 of Personal Finance
Recognize signs of credit
trouble.
 Managing Your Debts
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Identify parts of a credit report.
Signs of Credit Trouble
Ch. 5 of Personal Finance
 Protecting Your Credit and Correcting Credit Mistakes
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Recognize student loan options
and implications for the future.
Credit Reporting
Correcting Errors on a Credit Report
Ch. 6 of Personal Finance
 Types of Consumer Loans
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Student Loans
Table 6.1
Week Six: Major Financial Assets
Objective
What to Study
Explain interest rates.
Ch. 6 of Personal Finance
 Characteristics of Consumer Loans
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Interest Rates
Secured and Unsecured Loans
 Types of Consumer Loans
 Sources of Consumer Loans
Outline the decision process for
buying a car or house.
Ch. 7 of Personal Finance
 Buying a Motor Vehicle
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Figure 7.1
Preparing to Shop
Evaluating Alternatives
Determining Purchase Price
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Midterm Quiz Study Guide
FP/101 Version 5
 The Housing Decision
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Summarize the steps in buying a
home.
The Rent vs. Buy Decision
The Costs of Home Ownership
Ch. 7 of Personal Finance
 Buying a Home
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Choosing a Real Estate Broker
Your Legal Relationship with a Broker
 Mortgage Financing
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Types of Mortgages
Factors Affecting Mortgage Payments
 Completing a Real Estate Transaction
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The Closing
Closing Costs
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