FHCE 3200 MAIN EXAMINATION 2026 SET QUESTIONS
AND SOLUTIONS RATED A+
✔✔Long-term goals - ✔✔represent a big-picture idea of where you want to be
financially.
✔✔Short-term goals - ✔✔and daily tasks represent the immediate actions needed to
reach long-term goals.
✔✔Goal Time Horizon - ✔✔time between creating a goal and achieving the goal
✔✔different types of Goal Time Horizons - ✔✔Ultra-short term: 9 months or less
Short term: More than 9 months to 2.5 years
Short-intermediate term: More than 2.5 years to 5 years
Long-intermediate term: More than 5 years to 10 years
Long-term: More than 10 years
✔✔past oriented - ✔✔based on memories, whether good or bad
✔✔Present-Oriented - ✔✔based on:
-a hedonistic perspective: (doing things for pleasure, the experience, and excitement of
the action)
OR
-a fatalistic perspective: (unable to visualize a meaningful future)
✔✔Future-Oriented - ✔✔based on a calculation of the consequences of actions in
terms of a future payoff
✔✔What are the two ways to increase the importance of a goal? - ✔✔1. External
factors:
-Financial bonuses if you reach your goal
-Sharing your goal with others (in person or via social media)
2. Internal factors:
-Self-improvement
-Visualizing attainment of your goal
✔✔your internal view of finances includes your... - ✔✔-financial knowledge
-feelings of self control
-risk tolerance
✔✔self-efficacy - ✔✔how well you believe you can do something.
, ✔✔I want to retire with $1,000,000 in the bank" represents what element(s) of a SMART
goal? - ✔✔specific
✔✔procrastination - ✔✔is placing more value on the present at the expense of the
future.
✔✔Planning - ✔✔planning for the future is essential to achieving short-, intermediate-,
and long-term financial goals.
✔✔hyperbolic discounting - ✔✔occurs when the value of future benefits is perceived to
be lower than that of an alternative available right now.
✔✔Heuristics - ✔✔help us make decisions more quickly and easily than if we were to
labor over every choice.
✔✔Heuristics are - ✔✔-Based on past experiences
-Automatic and rarely used with forethought
-Can help you make quick decisions, however, they sometimes lead to problematic
choices and outcomes
✔✔Know each of the heuristics - ✔✔1. Identify the problem or issue
2. Gather appropriate facts and data about the situation
3. Analyze the data you have collected
4. List the viable alternatives and select the best one
5. Implement the decision
6. Monitor outcomes
✔✔optimism bias - ✔✔Some people think that they will rarely, if ever, experience painful
losses during their lifetime.
✔✔Interior finance - ✔✔refers to your knowledge, attitudes, perceptions, and abilities.
✔✔Exterior finance - ✔✔refers to the observable actions you take with money and the
associated outcomes, such as:
-loan payment amounts
-savings rates
-cash flow management
-net worth
✔✔Interest - ✔✔the price paid for the use of money
✔✔When you borrow money... - ✔✔-you pay it back plus interest
(ex: borrowing from a bank to buy a car)
AND SOLUTIONS RATED A+
✔✔Long-term goals - ✔✔represent a big-picture idea of where you want to be
financially.
✔✔Short-term goals - ✔✔and daily tasks represent the immediate actions needed to
reach long-term goals.
✔✔Goal Time Horizon - ✔✔time between creating a goal and achieving the goal
✔✔different types of Goal Time Horizons - ✔✔Ultra-short term: 9 months or less
Short term: More than 9 months to 2.5 years
Short-intermediate term: More than 2.5 years to 5 years
Long-intermediate term: More than 5 years to 10 years
Long-term: More than 10 years
✔✔past oriented - ✔✔based on memories, whether good or bad
✔✔Present-Oriented - ✔✔based on:
-a hedonistic perspective: (doing things for pleasure, the experience, and excitement of
the action)
OR
-a fatalistic perspective: (unable to visualize a meaningful future)
✔✔Future-Oriented - ✔✔based on a calculation of the consequences of actions in
terms of a future payoff
✔✔What are the two ways to increase the importance of a goal? - ✔✔1. External
factors:
-Financial bonuses if you reach your goal
-Sharing your goal with others (in person or via social media)
2. Internal factors:
-Self-improvement
-Visualizing attainment of your goal
✔✔your internal view of finances includes your... - ✔✔-financial knowledge
-feelings of self control
-risk tolerance
✔✔self-efficacy - ✔✔how well you believe you can do something.
, ✔✔I want to retire with $1,000,000 in the bank" represents what element(s) of a SMART
goal? - ✔✔specific
✔✔procrastination - ✔✔is placing more value on the present at the expense of the
future.
✔✔Planning - ✔✔planning for the future is essential to achieving short-, intermediate-,
and long-term financial goals.
✔✔hyperbolic discounting - ✔✔occurs when the value of future benefits is perceived to
be lower than that of an alternative available right now.
✔✔Heuristics - ✔✔help us make decisions more quickly and easily than if we were to
labor over every choice.
✔✔Heuristics are - ✔✔-Based on past experiences
-Automatic and rarely used with forethought
-Can help you make quick decisions, however, they sometimes lead to problematic
choices and outcomes
✔✔Know each of the heuristics - ✔✔1. Identify the problem or issue
2. Gather appropriate facts and data about the situation
3. Analyze the data you have collected
4. List the viable alternatives and select the best one
5. Implement the decision
6. Monitor outcomes
✔✔optimism bias - ✔✔Some people think that they will rarely, if ever, experience painful
losses during their lifetime.
✔✔Interior finance - ✔✔refers to your knowledge, attitudes, perceptions, and abilities.
✔✔Exterior finance - ✔✔refers to the observable actions you take with money and the
associated outcomes, such as:
-loan payment amounts
-savings rates
-cash flow management
-net worth
✔✔Interest - ✔✔the price paid for the use of money
✔✔When you borrow money... - ✔✔-you pay it back plus interest
(ex: borrowing from a bank to buy a car)
