Question 1

Generally,as income rises,the average propensity to consume

Accepted Answer

A)  stabilizes. 
B)  drops to zero. 
C)  increases. 
D)  becomes erratic. 
E)  decreases. 
A)  stabilizes. 
B)  drops to zero. 
C)  increases. 
D)  becomes erratic. 
E)  decreases.

Question 2

Inflation refers to

Accepted Answer

A)  rising prices. 
B)  declining interest rates. 
C)  the opposite of wealth. 
D)  the opposite of stagflation. 
E)  declining prices. 
A)  rising prices. 
B)  declining interest rates. 
C)  the opposite of wealth. 
D)  the opposite of stagflation. 
E)  declining prices.

Question 3

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-The two principal constraints which government places upon us are regulations and [tariffs | taxes].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 4

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-A decrease in the gross domestic product would indicate that our economy is [growing | stagnating].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 5

Estate planning involves

Accepted Answer

A)  considering how your wealth can be most effectively passed on to heirs. 
B)  payment of all back taxes. 
C)  dissolution of all privately held corporations. 
D)  valuation and auctioning of your valuables. 
E)  planning retirements. 
A)  considering how your wealth can be most effectively passed on to heirs. 
B)  payment of all back taxes. 
C)  dissolution of all privately held corporations. 
D)  valuation and auctioning of your valuables. 
E)  planning retirements.

Question 6

A good financial plan completed when one is in their 30s will typically last a lifetime.

Accepted Answer

A) True 
 B)False

Question 7

Employee benefits may include

Accepted Answer

A)  health insurance 
B)  disability insurance 
C)  life insurance 
D)  only a and b above 
E)  all of the above 
A)  health insurance 
B)  disability insurance 
C)  life insurance 
D)  only a and b above 
E)  all of the above

Question 8

Financial planning is a continuing,life-long process.

Accepted Answer

A) True 
 B)False

Question 9

For most people working in large firms,employee benefits are an important part of their financial planning.

Accepted Answer

A) True 
 B)False

Question 10

Financial assets include investments such as stocks and bonds.

Accepted Answer

A) True 
 B)False

Question 11

The longer you wait to begin retirement planning,the less you will likely have in your retirement fund.

Accepted Answer

A) True 
 B)False

Question 12

Wealth is the key consideration is establishing financial goals as it is the measure of value in financial transactions.

Accepted Answer

A) True 
 B)False

Question 13

Businesses provide

Accepted Answer

A)  stores. 
B)  money payments. 
C)  land and capital. 
D)  labor. 
E)  goods and services. 
A)  stores. 
B)  money payments. 
C)  land and capital. 
D)  labor. 
E)  goods and services.

Question 14

As the rate of inflation increases,

Accepted Answer

A)  the cost of living goes down. 
B)  interest rates decrease. 
C)  pay checks decrease. 
D)  retirement plans have more difficulty meeting their goals. 
E)  purchasing power of a dollar increases. 
A)  the cost of living goes down. 
B)  interest rates decrease. 
C)  pay checks decrease. 
D)  retirement plans have more difficulty meeting their goals. 
E)  purchasing power of a dollar increases.

Question 15

Liquid assets are stocks,bonds,and mutual funds.

Accepted Answer

A) True 
 B)False

Question 16

The most effective way to achieve financial objectives is through financial planning.

Accepted Answer

A) True 
 B)False

Question 17

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-[Vacations | Education] would be considered a necessity of life.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 18

Money can be an emotional factor that may affect a person's financial plans.

Accepted Answer

A) True 
 B)False

Question 19

GDP refers to the total earnings of American workers during a year.

Accepted Answer

A) True 
 B)False

Question 20

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-The primary determinant of your standard of living is your [wealth | propensity to consume].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Generally,as income rises,the average propensity to consume

Inflation refers to

Estate planning involves

A good financial plan completed when one is in their 30s will typically last a lifetime.

Employee benefits may include

Financial planning is a continuing,life-long process.

For most people working in large firms,employee benefits are an important part of their financial planning.

Financial assets include investments such as stocks and bonds.

The longer you wait to begin retirement planning,the less you will likely have in your retirement fund.

Wealth is the key consideration is establishing financial goals as it is the measure of value in financial transactions.

Businesses provide

As the rate of inflation increases,

Liquid assets are stocks,bonds,and mutual funds.

The most effective way to achieve financial objectives is through financial planning.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -[Vacations | Education] would be considered a necessity of life.

Money can be an emotional factor that may affect a person's financial plans.

GDP refers to the total earnings of American workers during a year.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The primary determinant of your standard of living is your [wealth | propensity to consume].

Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 1: Understanding the Financial Planning Process

Generally,as income rises,the average propensity to consume

Inflation refers to

Estate planning involves

A good financial plan completed when one is in their 30s will typically last a lifetime.

Employee benefits may include

Financial planning is a continuing,life-long process.

For most people working in large firms,employee benefits are an important part of their financial planning.

Financial assets include investments such as stocks and bonds.

The longer you wait to begin retirement planning,the less you will likely have in your retirement fund.

Wealth is the key consideration is establishing financial goals as it is the measure of value in financial transactions.

Businesses provide

As the rate of inflation increases,

Liquid assets are stocks,bonds,and mutual funds.

The most effective way to achieve financial objectives is through financial planning.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -[Vacations | Education] would be considered a necessity of life.

Money can be an emotional factor that may affect a person's financial plans.

GDP refers to the total earnings of American workers during a year.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The primary determinant of your standard of living is your [wealth | propensity to consume].

Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters