Question 1

The four stages of an economic cycle would not include

Accepted Answer

A)  depression. 
B)  expansion. 
C)  recession. 
D)  recovery. 
E)  stagnation. 
A)  depression. 
B)  expansion. 
C)  recession. 
D)  recovery. 
E)  stagnation.

Question 2

____ is the financial goal most people think is least important.

Accepted Answer

A)  Living well now 
B)  Being financially independent 
C)  Sending children to college 
D)  Providing for retirement 
E)  Leaving a large estate 
A)  Living well now 
B)  Being financially independent 
C)  Sending children to college 
D)  Providing for retirement 
E)  Leaving a large estate

Question 3

Bryon's assets include his furniture,clothing and an automobile.His assets are in which of the following asset classes?

Accepted Answer

A)  tangible 
B)  financial 
C)  liquid 
D)  a and b 
E)  b and c 
A)  tangible 
B)  financial 
C)  liquid 
D)  a and b 
E)  b and c

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.
-The average [self employed | retired] household has higher levels of assets.

Accepted Answer

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

Question 5

Inflation means price levels have declined.

Accepted Answer

A) True 
 B)False

Question 6

Defining financial goals is an important first step in personal financial planning process.

Accepted Answer

A) True 
 B)False

Question 7

Average propensity to consume refers to how much of your money you plan to save in your financial plan.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following goals is stated in a way that is most useful for developing a financial plan?

Accepted Answer

A)  Make a $12,000 down payment on an automobile in 4 years 
B)  Retire with a comfortable lifestyle in 25 years 
C)  Buy a $125,000 house in 6 years 
D)  Purchase a $40,000 boat 
E)  Join the country club when retired in 20 years 
A)  Make a $12,000 down payment on an automobile in 4 years 
B)  Retire with a comfortable lifestyle in 25 years 
C)  Buy a $125,000 house in 6 years 
D)  Purchase a $40,000 boat 
E)  Join the country club when retired in 20 years

Question 9

A ____ is a designation earned by financial planners after completing required courses of study.

Accepted Answer

A)  MBA 
B)  LUTCF 
C)  CFP 
D)  E.A. 
E)  CLU 
A)  MBA 
B)  LUTCF 
C)  CFP 
D)  E.A. 
E)  CLU

Question 10

The cost of raising a child from birth to age 18 is now more than $300,000.

Accepted Answer

A) True 
 B)False

Question 11

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.
-For most people,debts [increase constantly | increase and then decrease] during their lifetimes.

Accepted Answer

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

Question 12

Tangible assets are earning assets that are held for the returns they promise.

Accepted Answer

A) True 
 B)False

Question 13

The main reason to do personal financial planning is to

Accepted Answer

A)  minimize overall costs. 
B)  minimize overall utility. 
C)  assign monetary value to consumption. 
D)  maximize overall utility. 
E)  stabilize overall utility. 
A)  minimize overall costs. 
B)  minimize overall utility. 
C)  assign monetary value to consumption. 
D)  maximize overall utility. 
E)  stabilize overall utility.

Question 14

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.
-[Putting money into a retirement fund | Buying a car] would be an example of current consumption.

Accepted Answer

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

Question 15

Real assets are part of your wealth.

Accepted Answer

A) True 
 B)False

Question 16

Current consumption effects future consumption.

Accepted Answer

A) True 
 B)False

Question 17

A person who has $2,000 monthly income and spends $1,800 monthly has an average propensity to consume of 90%.

Accepted Answer

A) True 
 B)False

Question 18

Professional financial planners

Accepted Answer

A)  help by establishing personal financial goals. 
B)  are only for wealthy investors. 
C)  are skilled at offering simple solutions to complex financial problems. 
D)  make financial decisions for investors. 
E)  are best utilized during retirement years. 
A)  help by establishing personal financial goals. 
B)  are only for wealthy investors. 
C)  are skilled at offering simple solutions to complex financial problems. 
D)  make financial decisions for investors. 
E)  are best utilized during retirement years.

Question 19

While you are still working,you should be managing your finances for retirement planning.Which of the following is not a goal of your retirement planning?

Accepted Answer

A)  maintaining your standard of living 
B)  effectively passing wealth on to heirs 
C)  a vacation home or boat 
D)  travel 
A)  maintaining your standard of living 
B)  effectively passing wealth on to heirs 
C)  a vacation home or boat 
D)  travel

Question 20

The need for financial planning declines as your income increases.

Accepted Answer

A) True 
 B)False

The four stages of an economic cycle would not include

____ is the financial goal most people think is least important.

Bryon's assets include his furniture,clothing and an automobile.His assets are in which of the following asset classes?

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 average [self employed | retired] household has higher levels of assets.

Inflation means price levels have declined.

Defining financial goals is an important first step in personal financial planning process.

Average propensity to consume refers to how much of your money you plan to save in your financial plan.

Which of the following goals is stated in a way that is most useful for developing a financial plan?

A ____ is a designation earned by financial planners after completing required courses of study.

The cost of raising a child from birth to age 18 is now more than $300,000.

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. -For most people,debts [increase constantly | increase and then decrease] during their lifetimes.

Tangible assets are earning assets that are held for the returns they promise.

The main reason to do personal financial planning is to

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. -[Putting money into a retirement fund | Buying a car] would be an example of current consumption.

Real assets are part of your wealth.

Current consumption effects future consumption.

A person who has $2,000 monthly income and spends $1,800 monthly has an average propensity to consume of 90%.

Professional financial planners

While you are still working,you should be managing your finances for retirement planning.Which of the following is not a goal of your retirement planning?

The need for financial planning declines as your income increases.

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

The four stages of an economic cycle would not include

____ is the financial goal most people think is least important.

Bryon's assets include his furniture,clothing and an automobile.His assets are in which of the following asset classes?

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 average [self employed | retired] household has higher levels of assets.

Inflation means price levels have declined.

Defining financial goals is an important first step in personal financial planning process.

Average propensity to consume refers to how much of your money you plan to save in your financial plan.

Which of the following goals is stated in a way that is most useful for developing a financial plan?

A ____ is a designation earned by financial planners after completing required courses of study.

The cost of raising a child from birth to age 18 is now more than $300,000.

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. -For most people,debts [increase constantly | increase and then decrease] during their lifetimes.

Tangible assets are earning assets that are held for the returns they promise.

The main reason to do personal financial planning is to

Real assets are part of your wealth.

Current consumption effects future consumption.

A person who has $2,000 monthly income and spends $1,800 monthly has an average propensity to consume of 90%.

Professional financial planners

While you are still working,you should be managing your finances for retirement planning.Which of the following is not a goal of your retirement planning?

The need for financial planning declines as your income increases.

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