With Respect to Personal Financial Planning, the First Thing to Do

question 135

True/False

With respect to personal financial planning, the first thing to do with any extra money you have is to start a savings plan.

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Definitions:

Treasury Note

A medium-term government debt security with fixed interest rates and maturities typically ranging from 1 to 10 years.

Default Risk

The possibility that a borrower fails to meet the legal obligations or conditions of a debt.

Liquidity Risk

Refers to the uncertainty of a company's ability to meet its short-term financial commitments due to an inability to convert assets to cash quickly without significant loss.

Inflation Rates

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.