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Financial Management and Securities Markets Answer the followingquestions in paragraph, full-sentence format. Define personalfinances and financial planning. Explain the financial planninglife cycle. Identify the three stages of the personal-financesplanning process Discuss the trend in the U.S. savings rate. Definea subprime loan and explain the difference between a fixed-ratemortgage and an adjustable-rate mortgage. Discuss what can go wrongwith a subprime loan at an adjustable rate. Discuss what can gowrong with hundreds of thousands of subprime loans at adjustablerates. Exercise 1: Think of the type of job you’d like to have.Describe the job and indicate how you’d go about getting a joboffer for this type of job. How would you evaluate competing offersfrom two companies? What criteria would you use in selecting theright job for you? Exercise 2: You’re looking forward to taking amonth-long vacation to Australia when you graduate from college intwo years. Create a budget for this trip after researching likelycosts. Determine how much you’ll need for the trip and calculatehow much you’d have to save each month to afford the trip.