[FHCE 3200] - Midterm Exam Guide - Everything you need to know! (14 pages long)

• School: University of Georgia
• Department: Financial Planning, Housing and Consumer Economics
• Course: FHCE 3200
• Professor: Goren

Document Summary

You must buy peanut butter for your house. You go to the store and head to the correct aisle. You (cid:373)ust select your first credit card. People in general are fearful of loss. Investors with 20 year investment time horizon often tend to focus on short term losses instead of focusing on long term gains. Most people believe that they will never experience painful losses. Most people believe that they are a little better than average in their tasks. Seeking to confirm that their decision is correct. People often check reviews about a product after they have purchased it instead of checking reviews before the purchase. Many businesses also use behavioral economic principles to increase their profits from customers. In accounting this is known as a balance sheet. In accounting this also referred to as the profit & loss statement. Investable: riskier, less liquid, tend to gain value. Short term/current: loans due within a few years; revolving debt.