Cash Flows Are Affected by Financial Planning Decisions

question 23

Multiple Choice

Cash flows are affected by financial planning decisions. Which of the following is correct?

• A) Car payments you make are cash outflows.
• B) Investments you make in stock are cash inflows.
• C) Your routine monthly expenses are cash inflows.
• D) Your income is a cash outflow.

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Definitions:

Dollar Price

This refers to the cost or value of a good, service, or asset expressed in terms of the United States dollar.

English Pound

The currency of the United Kingdom, which is one of the world's major currencies used for trade and investment.

Gold Standard

A monetary system where a country's currency or paper money has a value directly linked to gold, used historically by many countries but largely abandoned today.

Franc

A currency that was historically used in several countries, including France and Switzerland, some of which still maintain the franc in various forms.