Answer each

Answer each

Part A: Answer each of the following questions in one or two paragraphs. Each answer is worth 20 points.

1. Explain the need for financial planning and the financial planning process.

2. Describe the various types of consumer loans and sources of credit.

3. Discuss how and why one should diversify his or her investment portfolio.

Part B: Answer each of the following questions in three to five sentences. Each answer is worth 4 points.

1. Why should you engage in personal financial planning?

2. Why is the balance sheet such an important financial document?

3. Describe the role that cash management plays in personal financial planning.

4. Discuss the motives for owning a home and the costs of owning a home.

5. Discuss the advantages associated with using credit.

6. Why should you consider life insurance?

7. Why should you have property insurance?

8. Why should you have an investment plan?

9. Why would you want to invest in mutual funds? 

10. Why should you estimate your income needs when planning for retirement? 
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