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An Understanding of Personal Finance Is Necessary to Judge the Quality

question 63

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An understanding of personal finance is necessary to judge the quality of advice that a financial adviser may give.


Definitions:

Supply and Demand

The fundamental economic model that describes how the price and availability of goods and services are determined in a market.

Artificial Price

A price level influenced by external factors such as government intervention, rather than by free market forces.

Imposed Price

A price that is set by an external authority rather than being determined by market forces.

Equilibrium Price

The price at which the quantity of a good supplied is equal to the quantity demanded, resulting in market stability.

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