Economics And Personal Finance Final Exam Answers

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    The exam may be taken in any Pearson VUE center around the world, in countries. Objectives Objectives The goal of Financial Analysis is to diagnose the past in order to understand the present and try to predict the future. This course provides...

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    Week 2 : Non-expected utility preferences and its applications in finance. Week 3 : Beliefs, biases and heuristics in financial markets. Week 4 : Basics of personal finance, financial planning, and budgeting. Week 5 : Investment decision making and behavioral finance Week 6 : Investment strategies for individual investors. Week 7 : Purchasing decisions, consumer credit and related issues. Week 8 : Alternative investment and structured finance. Books and references 1.

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    Z Ability-to-pay principle The idea that taxes should be levied on a person according to how well that person can shoulder that burden. Absolute advantage The ability to produce more of a good or service than another producer using the same amount of resources as that producer. Absolute good A value that cannot be traded off against other things that are highly valued by individuals. Many moral or ethical laws are considered to be absolute goods by the supporters or advocates of such laws. Adjustable-rate mortgage ARM A mortgage that permits the lender to periodically adjust the interest rate on the basis of changes in a specified index. Adjusted gross income Gross income minus specific adjustments. Administered rate An interest rate that is set directly rather than being influenced by the market forces of supply an demand. Adverse selection The tendency of insurance to be purchased by those most likely to make claims.

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    Advertising Communication used by businesses to persuade consumers to buy a good or service. Aggregate demand curve A graphical depiction of the amounts of real output gross domestic product [GDP] that buyers collectively desire to purchase at each possible price level. Aggregate supply curve A graphical depiction of the amounts of real output gross domestic product [GDP] that businesses will choose to produce at each possible price level. Algorithm A process or set of rules to be followed in calculations or other problem-solving operations, especially by a computer. Allocation Ways in which to distribute goods, services or resources. Alt-A Alternative A mortgage A non-standard mortgage owed by a borrower characterized by a strong credit history but with fewer traditional features--for example, reduced documentation, low down payment, or non-owner occupier.

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