1. financial planning (true of false) a. financial planning should attempt to minimize risk. b. the primary aim of financial planning is to obtain better forecasts of future cash flows and earnings. c. financial planning is necessary because financing and investment decisions interact and should not be made independently. d. firms’ planning horizons rarely exceed 3 years. e. individual capital investment projects are not considered in a financial plan unless they are very large. f. financial planning requires accurate and consistent forecasting. g. financial planning models should include as much detail as possible.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

answer; ///blank(1); dealers; blank(2); brokers;

answer; ///pegged exchange rate with the united states;